Latest news with #CorporaciónAméricaAirportsS.A
Yahoo
26-05-2025
- Business
- Yahoo
Corporación América Airports S.A. Just Missed Earnings - But Analysts Have Updated Their Models
Corporación América Airports S.A. (NYSE:CAAP) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to US$21.19 in the week after its latest first-quarter results. Revenue of US$448m surpassed estimates by 5.9%, although statutory earnings per share missed badly, coming in 47% below expectations at US$0.25 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Corporación América Airports after the latest results. Our free stock report includes 1 warning sign investors should be aware of before investing in Corporación América Airports. Read for free now. Taking into account the latest results, the five analysts covering Corporación América Airports provided consensus estimates of US$1.72b revenue in 2025, which would reflect a small 7.4% decline over the past 12 months. Statutory earnings per share are predicted to bounce 48% to US$1.57. In the lead-up to this report, the analysts had been modelling revenues of US$1.80b and earnings per share (EPS) of US$1.90 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates. View our latest analysis for Corporación América Airports Despite the cuts to forecast earnings, there was no real change to the US$22.33 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Corporación América Airports, with the most bullish analyst valuing it at US$24.70 and the most bearish at US$19.30 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects. Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 9.7% by the end of 2025. This indicates a significant reduction from annual growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.7% per year. It's pretty clear that Corporación América Airports' revenues are expected to perform substantially worse than the wider industry. The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Corporación América Airports. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at US$22.33, with the latest estimates not enough to have an impact on their price targets. Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Corporación América Airports going out to 2027, and you can see them free on our platform here. Plus, you should also learn about the 1 warning sign we've spotted with Corporación América Airports . Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
22-05-2025
- Business
- Yahoo
Corporación América Airports Reports First Quarter 2025 Results
Solid traffic performance supported strong top-line growth and ex-IAS29 Adjusted EBITDA expansion Passenger traffic in Argentina rebounded to a record-high in Jan '25; International traffic up 21.0% YoY Cash & Cash Equivalents at $449 million with Net Debt to LTM Adjusted EBITDA of 1.1x LUXEMBOURG, May 22, 2025--(BUSINESS WIRE)--Corporación América Airports S.A. (NYSE: CAAP), ("CAAP" or the "Company") one of the leading private airport operators in the world, reported today its unaudited, consolidated results for the three-month period ended March 31, 2025. Financial results are expressed in millions of U.S. dollars and are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board ("IASB"). Commencing 3Q18, the Company began reporting results of its Argentinean subsidiaries applying Hyperinflation Accounting, in accordance with IFRS rule IAS 29 ("IAS 29"), as detailed in Section "Hyperinflation Accounting in Argentina" on page 21. First Quarter 2025 Highlights Consolidated Revenues ex-IFRIC12 totaled $416.9 million, up 6.4% year-over-year (YoY), driven by increases of 6.8% and 6.1% in Aeronautical Revenues and Commercial Revenues, respectively. Excluding rule IAS 29, consolidated revenues ex-IFRIC12 increased 11.5% YoY to $413.9 million. Key operating metrics: 7.3% increase in passenger traffic to 20.4 million, or up 9.4% excluding Natal. 9.1% increase in cargo volume to 95.9 thousand tons. 3.1% increase in aircraft movements, or 4.7% excluding Natal. Operating Income of $104.0 million, compared with $124.8 million in 1Q24. Adjusted EBITDA ex-IFRIC12 decreased 4.6% to $155.6 million, from $163.2 million in the year-ago period. Excluding the impact of rule IAS 29, Adjusted EBITDA ex-IFRIC12 increased 4.0% to $157.9 million. Adjusted EBITDA margin ex-IFRIC12 was 37.3% compared to 41.7% in 1Q24. Adjusting for rule IAS 29, Adjusted EBITDA margin ex-IFRIC12 contracted to 38.2% from 40.9% in the prior-year quarter. Strong liquidity position with Cash & Cash equivalents of $448.6 million as of March 31, 2025. Net debt to LTM Adjusted EBITDA stood at 1.1x as of March 31, 2025, unchanged from December 31, 2024. CEO Message Commenting on the results for the quarter Mr. Martín Eurnekian, CEO of Corporación América Airports, noted: "We had a solid start to 2025, driven by a strong recovery in Argentina and traffic growth across all our markets. Total passenger traffic rose by over 7% year-over-year, or more than 9% when excluding the discontinued Natal concession in Brazil. Argentina led the rebound, delivering double-digit growth and reaching record-high volumes in January. Uruguay also achieved an all-time record at Carrasco airport in January, while Italy posted strong performance at both Florence and Pisa airports. Growth was broad-based, with gains in both international and domestic traffic. International traffic in particular maintained strong momentum, increasing nearly 13% compared to the same period last year. "Revenues grew by 6% year-over-year, or close to 12% on an ex-IAS 29 basis—outpacing traffic growth and highlighting our focus on maintaining commercial revenue momentum. Adjusted EBITDA excluding IAS 29 rose 4% to $158 million, supported by positive contributions from Argentina, Uruguay, and Ecuador. EBITDA margin ex-IAS 29 stood at 38%, impacted by inflationary pressures in Argentina, where Peso-denominated costs continued to outpace currency depreciation, as well as FX translation effects in Brazil and, to a lesser extent, in Italy. "On the commercial front, we are advancing key initiatives to increase revenue per PAX as well as enhance the passenger experience. In Argentina, we are completing the expansion of the duty-free arrivals area at Ezeiza Airport this month, more than doubling its size. In Uruguay, we inaugurated a new covered parking facility at Montevideo Airport, further improving service quality and unlocking growth in commercial revenues. "Strategically, we continued to advance value creation projects across our portfolio. In Armenia, we are progressing with our $425 million Capex program. In Italy, the Florence master plan received a positive environmental review, and in Argentina, we remain in active negotiations with the government regarding the revision of the economic equilibrium of the Aeropuertos Argentina concession agreement. On the new business front, we submitted our proposal for a 30-year concession in Montenegro and further clarifications in Angola. We boosted our new business development team to pursue future opportunities. "Finally, we were honored to receive several industry recognitions that speak to our operational excellence. Carrasco Airport in Uruguay was named Best Airport in Latin America and the Caribbean under 2 million passengers by ACI. Brasília Airport ranked second globally for punctuality in its category and topped Brazil in passenger satisfaction, while Guayaquil Airport in Ecuador earned a prestigious 5-star EFQM rating. "We enter the rest of the year with strong momentum and remain focused on executing our strategy with discipline to control costs and deliver value creation." Operating & Financial Highlights (In millions of U.S. dollars, unless otherwise noted) 1Q25 asreported 1Q24 asreported % Var asreported IAS 291Q25 1Q25 exIAS 29 1Q24 exIAS 29 % Var exIAS 29 Passenger Traffic (Million Passengers) 20.4 19.0 7.3% 20.4 19.0 7.3% Revenue 447.8 433.0 3.4% 1.6 446.2 412.3 8.2% Aeronautical Revenues 236.7 221.5 6.8% 1.4 235.3 208.7 12.7% Non-Aeronautical Revenues 211.1 211.5 -0.2% 0.2 210.9 203.6 3.6% Revenue excluding construction service 416.9 391.7 6.4% 3.0 413.9 371.1 11.5% Operating Income / (Loss) 104.0 124.8 -16.6% -34.5 138.6 132.6 4.5% Operating Margin 23.2% 28.8% -559 0.0% 31.1% 32.1% -109 Net (Loss) / Income Attributable to Owners of the Parent 40.8 152.7 -73.3% -18.6 59.3 89.8 -33.9% Basic EPS (US$) 0.25 0.95 -73.3% -0.12 0.37 0.56 -34.0% Adjusted EBITDA 157.8 163.9 -3.7% -2.3 160.1 152.5 5.0% Adjusted EBITDA Margin 35.2% 37.9% -261 - 35.9% 37.0% -110 Adjusted EBITDA Margin excluding Construction Service 37.3% 41.7% -433 - 38.2% 40.9% -274 Net Debt to LTM Adjusted EBITDA 1.1x 1.2x - - - - - Net Debt to LTM Adjusted EBITDA excl. impairment on intangible assets (1) 1.1x 1.4x - - - - - Note: Figures in historical dollars (excluding IAS29) are included for comparison purposes. 1) LTM Adjusted EBITDA excluding impairments of intangible assets. To obtain the full text of this earnings release and the earnings presentation, please click on the following link: 1Q25 EARNINGS CONFERENCE CALL When: 10:00 a.m. Eastern Time, May 23, 2025 Who: Mr. Martín Eurnekian, Chief Executive OfficerMr. Jorge Arruda, Chief Financial OfficerMr. Patricio Iñaki Esnaola, Head of Investor Relations Dial-in: 1-800-549-8228 (North America, Toll Free); 1-289-819-1520 (Other locations); Conference ID: 53287 Webcast: CAAP 1Q25 Earnings Conference Call Replay: 1-888-660-6264 (North America, Toll Free); 1-289-819-1325 (Other locations); Playback Passcode: 53287 # Use of Non-IFRS Financial Measures This announcement includes certain references to Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction service, as well as Net Debt: Adjusted EBITDA is defined as income for the period before financial income, financial loss, income tax expense, depreciation and amortization. Adjusted EBITDA Margin is calculated by dividing Adjusted EBITDA by total revenues. Adjusted EBITDA excluding Construction Service ("Adjusted EBITDA ex-IFRIC") is defined as income for the period before construction services revenue and cost, financial income, financial loss, income tax expense, depreciation and amortization. Adjusted EBITDA Margin excluding Construction Service ("Adjusted EBITDA Margin ex-IFRIC12") excludes the effect of IFRIC 12 with respect to the construction or improvements to assets under the concession and is calculated by dividing Adjusted EBITDA excluding Construction Service revenue and cost, by total revenues less Construction service revenue. Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted EBITDA excluding Construction Service and Adjusted EBITDA Margin excluding Construction Service are not measures recognized under IFRS and should not be considered as an alternative to, or more meaningful than, consolidated net income for the year as determined in accordance with IFRS or as indicators of our operating performance from continuing operations. Accordingly, readers are cautioned not to place undue reliance on this information and should note that these measures as calculated by the Company, may differ materially from similarly titled measures reported by other companies. We believe that the presentation of Adjusted EBITDA and Adjusted EBITDA excluding Construction Service enhances an investor's understanding of our performance and are useful for investors to assess our operating performance by excluding certain items that we believe are not representative of our core business. In addition, Adjusted EBITDA and Adjusted EBITDA excluding Construction Service are useful because they allow us to more effectively evaluate our operating performance and compare the results of our operations from period to period without regard to our financing methods, capital structure or income taxes and construction services (when applicable). Net debt is calculated by deducting "Cash and cash equivalents" from total financial debt. Figures ex-IAS 29 result from dividing nominal Argentine pesos for the Argentine Segment, by the average foreign exchange rate of the Argentine Peso against the US dollar in the period. Percentage variations ex-IAS 29 figures compare results as presented in the prior year quarter before IAS 29 came into effect, against ex-IAS 29 results for this quarter as described above. For comparison purposes, the impact of adopting IAS 29 in Aeropuertos Argentina 2000, the Company's largest subsidiary in Argentina, is presented separately in each of the applicable sections of this earnings release, in a column denominated "IAS 29". The impact from "Hyperinflation Accounting in Argentina" is described in more detail page 21 of this report. Definitions and Concepts Commercial Revenues: CAAP derives commercial revenue principally from fees resulting from warehouse usage (which includes cargo storage, stowage and warehouse services and related international cargo services), services and retail stores, duty free shops, car parking facilities, catering, hangar services, food and beverage services, retail stores, including royalties collected from retailers' revenue, and rent of space, advertising, fuel, airport counters, VIP lounges and fees collected from other miscellaneous sources, such as telecommunications, car rentals and passenger services. Construction Service revenue and cost: Investments related to improvements and upgrades to be performed in connection with concession agreements are treated under the intangible asset model established by IFRIC 12. As a result, all expenditures associated with investments required by the concession agreements are treated as revenue generating activities given that they ultimately provide future benefits, and subsequent improvements and upgrades made to the concession are recognized as intangible assets based on the principles of IFRIC 12. The revenue and expense are recognized as profit or loss when the expenditures are performed. The cost for such additions and improvements to concession assets is based on actual costs incurred by CAAP in the execution of the additions or improvements, considering the investment requirements in the concession agreements. Through bidding processes, the Company contracts third parties to carry out such construction or improvement services. The amount of revenues for these services is equal to the amount of costs incurred plus a reasonable margin, which is estimated at an average of 3.0% to 5.0%. About Corporación América Airports Corporación América Airports acquires, develops and operates airport concessions. Currently, the Company operates 52 airports in 6 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). In 2024, Corporación América Airports served 79.0 million passengers, 2.7% (or 0.4% excluding Natal) below the 81.1 million passengers served in 2023, and 6.2% below the 84.2 million served in 2019. The Company is listed on the New York Stock Exchange where it trades under the ticker "CAAP". For more information, visit Forward Looking Statements Statements relating to our future plans, projections, events or prospects are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by terms such as "believes," "continue," "could," "potential," "remain," "will," "would" or similar expressions and the negatives of those terms. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements, including, but not limited to: the Covid-19 impact, delays or unexpected casualties related to construction under our investment plan and master plans, our ability to generate or obtain the requisite capital to fully develop and operate our airports, general economic, political, demographic and business conditions in the geographic markets we serve, decreases in passenger traffic, changes in the fees we may charge under our concession agreements, inflation, depreciation and devaluation of the AR$, EUR, BRL, UYU or the AMD against the U.S. dollar, the early termination, revocation or failure to renew or extend any of our concession agreements, the right of the Argentine Government to buy out the AA2000 Concession Agreement, changes in our investment commitments or our ability to meet our obligations thereunder, existing and future governmental regulations, natural disaster-related losses which may not be fully insurable, terrorism in the international markets we serve, epidemics, pandemics and other public health crises and changes in interest rates or foreign exchange rates. The Company encourages you to review the 'Cautionary Statement' and the 'Risk Factor' sections of our annual report on Form 20-F for the year ended December 31, 2019 and any of CAAP's other applicable filings with the Securities and Exchange Commission for additional information concerning factors that could cause those differences. View source version on Contacts Investor Relations Contact Patricio Iñaki Esnaola Email: Phone: +5411 4899-6716
Yahoo
15-05-2025
- Business
- Yahoo
Corporación América Airports Announces First Quarter 2025 Financial Results Call and Webcast
LUXEMBOURG, May 15, 2025--(BUSINESS WIRE)--Corporación América Airports S.A. (NYSE: CAAP), one of the leading private airport operators in the world, today announced that it will report its First Quarter 2025 results on Thursday, May 22, after market closes. We remind all participants to connect through the telephone in order to ask questions. Earnings ReleaseThursday, May 22, 2025Time: After Market Closes Conference CallFriday, May 23, 2025Time: 10:00 am Eastern Time ExecutivesMr. Martín Eurnekian, Chief Executive OfficerMr. Jorge Arruda, Chief Financial OfficerMr. Patricio Iñaki Esnaola, Head of Investor Relations To participate, please dial in1-800-549-8228 (North America, Toll Free)1-289-819-1520 (Other locations)Conference ID: 53287 Webcast (click here) Recording Playback Numbers1-888-660-6264 (North America, Toll Free)1-289-819-1325 (Other locations)Playback Passcode: 53287 # About Corporación América Airports Corporación América Airports acquires, develops and operates airport concessions. Currently, the Company operates 52 airports in 6 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). In 2024, Corporación América Airports served 79.0 million passengers, 2.7% (or 0.4% excluding Natal) below the 81.1 million passengers served in 2023, and 6.2% below the 84.2 million served in 2019. The Company is listed on the New York Stock Exchange where it trades under the ticker "CAAP". For more information, visit View source version on Contacts Investor Relations Contact Patricio Iñaki EsnaolaEmail: Phone: +5411 4899-6716 Sign in to access your portfolio
Yahoo
18-02-2025
- Business
- Yahoo
Corporación América Airports S.A. Reports January 2025 Passenger Traffic
Another all-time high monthly PAX traffic in Argentina Total passenger traffic up 5.3% YoY, or up 9.5% YoY ex-Natal International passenger traffic up 13.9% YoY; up 22.0% YoY in Argentina LUXEMBOURG, February 18, 2025--(BUSINESS WIRE)--Corporación América Airports S.A. (NYSE: CAAP), ("CAAP" or the "Company"), one of the leading private airport operators in the world, reported today a 5.3% year-on-year (YoY) increase in passenger traffic in January 2025. Excluding Natal for comparison purposes, total traffic in January increased by 9.5% YoY. Passenger Traffic, Cargo Volume and Aircraft Movements Highlights (2025 vs. 2024) Statistics Jan'25 Jan'24 % Var. Domestic Passengers (thousands) 3,573 3,610 -1.0% International Passengers (thousands) 2,717 2,387 13.9% Transit Passengers (thousands) 705 643 9.6% Total Passengers (thousands)1 6,995 6,640 5.3% Cargo Volume (thousand tons) 32.1 28.6 12.2% Total Aircraft Movements (thousands) 70.6 69.8 1.2% 1 Excluding Natal for comparison purposes, total passenger traffic was up 9.5% in January. Passenger Traffic Overview Total passenger traffic increased by 5.3% in January compared to the same month in 2024, or by 9.5% when adjusted for the discontinuation of operations at Natal Airport. Domestic passenger traffic declined by 1.0% year-over-year but grew by 5.9% when excluding Natal. This growth was primarily driven by a strong recovery in domestic traffic in Argentina. Meanwhile, international traffic rose by 13.9%, with all operating countries contributing positively year-over-year. Argentina, in particular, accounted for 80% of the total international traffic growth. In Argentina, total passenger traffic increased by 12.8% YoY, an improvement from the 7.0% YoY growth recorded in December, marking another all-time high. This increase was primarily driven by a strong recovery in domestic traffic, which rose by 8.8% YoY, up from the 3.4% YoY growth recorded in December. As a reminder, domestic traffic YoY comparisons are no longer impacted by the 'Previaje' incentive program, which was suspended in December 2023 following the swearing-in of the new government. International passenger traffic continued to perform well and increased by a robust 22.0% YoY, up from the 16.2% YoY growth recorded in December. In Italy, passenger traffic grew by 5.6% compared to the same month in 2024. International passenger traffic, which accounted for over 75% of the total traffic, increased by 5.2% YoY, driven by an 8.1% increase at Pisa airport and a 2.0% increase at Florence airport. Domestic passenger traffic increased by 7.0% YoY, with strong performances at both Pisa and Florence airports. In Brazil, total passenger traffic decreased by 14.3% YoY, or increased by 2.8% YoY when adjusting for the discontinuation of Natal Airport. These results reflect an improvement in traffic trends despite the still challenging aviation context and aircraft constraints in the country. Domestic traffic, which accounted for over 50% of the total traffic, was down 28.2% YoY, or 3.5% when excluding Natal, while transit passengers were up 9.7% YoY. As a reminder, following the friendly termination process concluded in February 2024, CAAP no longer operates Natal Airport, effective February 19, 2024. Therefore, statistics for Natal are available up to February 18, 2024. In Uruguay, total passenger traffic, predominantly international, continued its recovery, rising by 4.7% YoY, driven by new routes launched for the summer season. In December, SKY Airline introduced a new route connecting Montevideo with Rio de Janeiro, while Azul Linhas Aéreas began operating flights to Florianópolis. At Punta del Este Airport, the company kicked off the summer season with the first direct flight from Santiago de Chile to Punta del Este, operated by LATAM, with three weekly flights from November to March. In Ecuador, passenger traffic rose by 8.1% year-over-year, despite ongoing security concerns in the country. International passenger traffic increased by 13.1% YoY, while domestic traffic grew by 3.2% YoY, affected by high airfare prices, which have impacted travel demand. In Armenia, passenger traffic increased by 6.7% YoY, following a strong recovery post-Covid. This growth was supported by the introduction of new airlines and routes, along with an increase in flight frequencies. Cargo Volume and Aircraft Movements Cargo volume increased by 12.2% compared to the same month in 2024, with positive YoY contributions from all countries of operation, except for Brazil and Ecuador: Argentina (+14.1%), Uruguay (+45.9%), Armenia (+28.8%), Italy (+4.3%), Ecuador (-4.8%) and Brazil (-4.7%). Argentina, Brazil, and Armenia accounted for almost 80% of the total cargo volume in January. Aircraft movements increased by 1.2% YoY, with positive YoY contributions from all countries of operation, except for Brazil: Argentina (+4.5%), Uruguay (+1.7%), Armenia (+6.3%), Ecuador (+3.9%), Italy (+3.8%), and Brazil (-12.6%). Argentina, Brazil, and Ecuador accounted for more than 80% of total aircraft movements in January. Summary Passenger Traffic, Cargo Volume and Aircraft Movements (2025 vs. 2024) Jan'25 Jan'24 % Var. Passenger Traffic (thousands) Argentina 4,218 3,738 12.8% Italy 485 459 5.6% Brazil (1) 1,283 1,497 -14.3% Uruguay 243 232 4.7% Ecuador 373 345 8.1% Armenia 393 368 6.7% TOTAL 6,995 6,640 5.3% (1) Following the friendly termination process concluded in February 2024, CAAP no longer operates Natal airport. Statistics for Natal are available up to February 18, 2024. Cargo Volume (tons) Argentina 17,658 15,471 14.1% Italy 1,073 1,029 4.3% Brazil 4,434 4,653 -4.7% Uruguay 2,950 2,022 45.9% Ecuador 2,811 2,953 -4.8% Armenia 3,128 2,429 28.8% TOTAL 32,054 28,557 12.2% Aircraft Movements Argentina 41,116 39,352 4.5% Italy 4,524 4,359 3.8% Brazil 11,072 12,665 -12.6% Uruguay 3,899 3,835 1.7% Ecuador 6,853 6,594 3.9% Armenia 3,148 2,961 6.3% TOTAL 70,612 69,766 1.2% About Corporación América Airports Corporación América Airports acquires, develops and operates airport concessions. Currently, the Company operates 52 airports in 6 countries across Latin America and Europe (Argentina, Brazil, Uruguay, Ecuador, Armenia and Italy). In 2024, Corporación América Airports served 79.0 million passengers, 2.7% (or 0.4% excluding Natal) below the 81.1 million passengers served in 2023, and 6.2% below the 84.2 million served in 2019. The Company is listed on the New York Stock Exchange where it trades under the ticker "CAAP". For more information, visit View source version on Contacts Investor Relations Contact Patricio Iñaki EsnaolaEmail: Phone: +5411 4899-6716 Sign in to access your portfolio
Yahoo
17-02-2025
- Business
- Yahoo
Corporación América Airports S.A. (CAAP): Among the Best Airport Stocks to Invest in Now
We recently published a list of 12 Best Airport Stocks to Invest in Now. In this article, we are going to take a look at where Corporación América Airports S.A. (NYSE:CAAP) stands against other best airport stocks to invest in now. Prior to the pandemic, the travel and tourism industry contributed 10.4% of GDP (US$10.3 trillion) and 10.5% of all jobs (334 million), making it a vital sector of the global economy. The industry's contribution to global GDP in 2023 was 9.1%, up 23.2% from 2022 and just 4.1% below 2019 levels, according to WTTC's most recent research. Domestic visitor expenditure increased by 18.1%, surpassing 2019 levels, while employment increased by 27 million jobs, a 9.1% year-over-year gain. Spending by foreign visitors increased by 33.1%, but it was still 14.4% less than before the outbreak. Julia Simpson, WTTC President & CEO, on April 2024, stated: 'The future is very bright. We can predict a record-breaking 2024. The sector's global economic contribution is set to reach an all-time high of $11.1 trillion, which will generate one in every ten dollars worldwide. The sector is also expected to support nearly 348 million jobs, an increase of 13.6 million jobs on its 2019 record. We trust that our data will support policymakers, industry professionals and individuals engaged in the evolution of travel.' According to Fortune Business Insights, in 2024, the size of the global market for airport services was valued at $196.96 billion. The market is expected to increase at a compound annual growth rate of 14.4% from $222.26 billion in 2025 to $570.12 billion by 2032. In 2024, North America held a 28.98% market share, dominating the airport services industry. Furthermore, it is projected that the airport services market in the United States will expand considerably, reaching an estimated value of $130.37 billion by 2032. This growth will be fueled by a rise in air and passenger traffic as well as cargo transportation. According to S&P's report, the worldwide travel retail sector is expected to expand by 7%-10% between 2024 and 2025, greatly above the 3.3% and 3.2% growth in the global GDP in 2024 and 2025, respectively. Sales won't approach 2019 levels until 2025, but air traffic will surpass pre-pandemic levels in 2024. Growth will be driven by Asia-Pacific, helped by better infrastructure and a growing middle class. Duty-free shopping, however, might be slowed by declining consumer confidence and fewer business tourists. As per the aforementioned report, over the next two to four years, it is anticipated that global air traffic will increase more quickly than GDP due to growing middle classes in Asia-Pacific and, to a lesser extent, Latin America, as well as better infrastructure and connectivity. By incorporating technology, personalization, and hybrid stores that blend duty-free shopping with dining options and entertainment, travel businesses are adjusting. Customer experiences are also being improved by a move toward luxury items, fashion, electronics, and regional merchandise. More passenger time will be available for shopping because of increased digitization, remote check-in, and bag-drop services. However, sector profits are under pressure from growing airport concession fees, which have leveled off at higher levels since the pandemic. Chinese operators have secured reduced concession rates, giving them a competitive edge, even though the majority of travel shops would see a rise in expenses. Looking ahead, according to Deloitte's report, in 2025, travel demand is projected to be high due to post-pandemic lifestyle changes, greater freedom in working remotely, and a promising economic outlook. TSA throughput climbed by 7% year over year between December 20 and January 5 as a result of US tourists planning longer and more costly travels during the recent winter holiday season. A post-pandemic reprioritization, with 40% of travelers raising their holiday budgets because travel has become more important, and the growing trend of 'laptop lugging,' where half of passengers want to work remotely while traveling, are important factors. Travel expenditure was also supported by the fact that the percentage of Americans who reported an improved financial situation jumped from 31% to 37%. Travel agencies need to adjust to new AI applications, changing global travel patterns, increased service offerings, and possible regulatory changes under a new administration to meet this demand. An airline passenger going through the security process at an airport managed by the company. We sifted through holdings of airport services ETFs and online rankings to form an initial list of 20 airport stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey's database of 900 hedge funds in Q3 2024 to gauge hedge fund sentiment for stocks. We have used the stock's market capitalization as of February 12 for stocks that are trading under OTC. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here). Number of Hedge Fund Holders: 2 Airport concessions are purchased, developed, and administered by Corporación América Airports S.A. (NYSE:CAAP). Argentina, Italy, Brazil, Uruguay, Ecuador, and Armenia are the geographical divisions of its operating segments. The Argentina segment accounts for the majority of the company's revenue. Aeronautical, non-aeronautical, commercial, construction service, and other revenue are the several categories into which the company's revenue is divided. In December 2024, Corporación América Airports S.A. (NYSE:CAAP) reported a 3.2% year-over-year growth in passenger traffic, including an 11.4% increase in international traffic. The overall passenger traffic increased by 6.6% when the consequences of the Natal Airport's ceased operations were taken out of the equation. Strong domestic traffic recovery and notable international traffic increase propelled Argentina's monthly passenger traffic to an all-time high. Performance varied by country, with Argentina and Italy exhibiting strong growth and Brazil declining as a result of fewer operations at Natal. A favorable trend in operational metrics was highlighted by a 9.3% year-over-year increase in cargo volume and a 2.5% increase in aircraft movements. Corporación América Airports S.A. (NYSE:CAAP)'s significant regional diversification has helped to minimize Argentina's macroeconomic issues, with solid performances in Uruguay, Brazil, and Italy contributing to EBITDA growth. Lower passenger volumes and poorer duty-free sales caused a fall in revenue; yet, the company's strong cash flow generation and sound balance sheet offer a strong basis for future growth. Management's dedication to long-term growth is proven by strategic investments such as the Florence Airport master plan, the Capex program in Armenia, and the commercial upgrades at Carrasco and Ezeiza Airports. Additionally, revenue will be greatly increased by Argentina's recent 124% rise in domestic passenger use fees, which went into effect on November 1. The company's long-term perspective and position are further strengthened by hints of macroeconomic stabilization, robust October international passenger numbers, and cautious capital allocation. Griffin's was the largest stakeholder in the company from among the funds in Insider Monkey's database at the end of Q3 2024. It owns 29,300 shares worth $511,578 as of Q3. Overall, CAAP ranks 8th on our list of Best Airport Stocks to Invest in Now. While we acknowledge the potential for CAAP to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CAAP but that trades at less than 5 times its earnings, check out our report about the . READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap Disclosure: None. This article is originally published at Insider Monkey. 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