Atlas Arteria Ltd (ASX: ALX) shares are on watch today after the toll road operator and developer released its latest quarterly update.
Why could Atlas Arteria shares move today?
Formerly known as Macquarie Roads, Atlas Arteria shares could climb higher today after reporting a strong fourth quarter ended 31 December 2019.
Atlas reported that weighted average toll revenue increased by 6.6% compared to the prior corresponding period (pcp) in Q4 2018. Its weighted average traffic also surged, up 6.2% on pcp in December.
Management noted the weaker year-on-year performance last year stemming from the Yellow Vests protests in France.
For the 2019 calendar year, weighted average toll revenue and traffic increased by 2.6% and 0.7%, respectively.
There were strong year on year increases in the group's APRR, ADELAC and Warnow Tunnel businesses. France-based APRR quarterly toll revenue climbed 7.7% while the group's Warnow Tunnel in Germany saw toll revenue climb 8.8% on pcp.
Warnow Tunnel benefitted from roadworks on competing routes while APRR cashed in on the pension reform strikes that affected French rail and air travel in December 2019.
However, Atlas' Dulles Greenway had a disappointing end to 2019. The US business had a 2.3% slump in toll revenue and 5.1% slump in average daily traffic in December.
Management cited substantial price rises on 1 January 2019 as a key factor behind lower traffic numbers in 2019. Atlas Arteria also reported that Dulles Greenway is set to fail its one-year distribution lock-up test. This result could weigh on the group's share price.
How have Atlas shares performed on the ASX?
The $7.03 billion road developer and operator has had a solid 12 months or so on the ASX.
Atlas Arteria shares are up 26.78% in the last 12 months, including gains of 2.04% to start the year. The ASX 200 group has seen its share price climb 33% higher since splitting from Macquarie Group Ltd (ASX: MQG) in April 2018.
The group is currently yielding a tidy 3.69% dividend yield for shareholders. That's despite trading at $8.00 per share – just shy of its $8.45 per share all-time high.
