GUADALAJARA - Grupo Aeroportuario del Pacífico, S.A.B. de C.V. (NYSE: PAC; BMV: GAP), a leading operator of 12 airports in Mexico, has released its financial guidance for the full year of 2024, indicating a mixed performance across its various revenue streams. The company anticipates a decrease in passenger traffic, which is expected to fall between 3% to 5%, as well as a decline in aeronautical revenues by 2% to 4%. However, non-aeronautical revenues are projected to increase by 12% to 14%.
The overall total revenues for GAP are forecasted to remain relatively stable, with a growth ranging from 0% to 2%. Earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to decrease by 5% to 7%, with an EBITDA margin of around 65%, potentially fluctuating by 1%.
Capital expenditures (CAPEX) for the year are set at approximately 9.0 billion Mexican pesos (MX$1= $0.059). These investments will be directed towards infrastructure expansion, quality service improvements, and the final stage of the Mixed-use Building at Guadalajara airport, among other initiatives.
The company's projections are based on several factors, including the consolidation of routes, estimated load factors, and the grounding of aircraft due to accelerated GTF engine preventive inspections. Revenue estimates take into account current traffic performance, inflation, contract terms, and existing commercial agreements.
GAP's guidance also reflects the anticipated cost increases in services due to operational requirements, infrastructure expansion, inflation, an increase in minimum wages, concession taxes, and the hiring of additional personnel.
InvestingPro Insights
As Grupo Aeroportuario del Pacífico (GAP) navigates through an environment of mixed financial forecasts for 2024, current real-time data from InvestingPro provides a more detailed picture of the company's standing. With a robust gross profit margin of 86.05% over the last twelve months as of Q3 2023, GAP demonstrates its efficiency in generating revenue relative to its costs. This aligns with the company's strategic focus on non-aeronautical revenues, which are projected to grow significantly. Additionally, GAP's impressive dividend yield of 4.97% as of December 2023, coupled with a history of raising its dividend for three consecutive years, underscores its commitment to returning value to shareholders.
InvestingPro Tips highlight GAP as a prominent player in the Transportation Infrastructure industry, with analysts predicting profitability for the year. Although the stock has experienced a downturn over the last month, with a 1-month price total return of -13.51%, it has shown a high return over the last decade. These insights suggest that while short-term market performance has been volatile, GAP's long-term prospects remain strong.
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