Atlas Arteria (ASX:ALX) share price flat on trading update

The Atlas Arteria Group (ASX: ALX) share price has remained relatively flat today, despite an improved trading update.

| More on:
A woman with black afro hair and wearing a white t-shirt shrugs and purses her lips

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Atlas Arteria Group (ASX: ALX) share price has remained relatively flat today, despite the company providing an improved trading update.

At market open this morning, the Atlas Arteria share price reached as high as $6.34. However, the toll road company's shares have since pulled back to $6.21, down 0.88% at the time of writing.

How did Atlas Arteria track for Q3 FY20?

Atlas Arteria reported a strong recovery following the impact of various international government responses to COVID-19.

For the quarter ending September 30, the company produced a revenue decline of 4% over the comparative period. This was a large improvement on the 44.2% drop of the June quarter compared to the prior corresponding period.

The resurgence of traffic levels was noticed particularly in France and Germany during the European summer months of July and August.

Let's take a closer look at how each of Atlas Arteria's segments performed.

France

The company operates APRR toll road networks in France and ADELAC on the A41 motorway between France and Switzerland. Overall traffic volumes for APRR and ADELAC were down marginally for the three months compared to this time last year. The relaxation of travel restrictions coupled with the start of the holiday season underpinned higher traffic volumes.

However, as a second wave of COVID-19 descends on France, government officials have reinstated limitations on social interaction. Thus, Atlas Arteria is experiencing softened traffic volumes and expects this to continue in the coming quarter.

United States

Across the Atlantic, Atlas Arteria's United States road network saw a massive fall in traffic volumes. The reduction in commuting and a move to remote learning for schools has contributed to a fall of 44.8% over the prior corresponding period.

Pleasingly, the company said a staged-return of kindergarten to Grade 2 students is expected to occur in late October. It is anticipated this will have a positive impact on traffic on the Dulles Greenway in North Virginia.

Germany

Traffic on German toll roads for Q3 was up 0.8% over the same period in 2019. Mecklenburg-Vorpommern, the state in which the Warnow Tunnel is located, has reported few COVID-19 case numbers since the pandemic hit.

Social gatherings have been relaxed since early July, with regional tourism resuming and traffic returning to growth.

Atlas Arteria advised that although Germany was expecting a rise in COVID-19 cases, Mecklenburg-Vorpommern had been relatively unaffected.

About the Atlas Arteria share price

The Atlas Arteria share price fell to a 52-week low of $3.51 in the March COVID-19 crash before recovering to trade at prices over $6 by May. However, the share price remained flat in the following months, failing to recover to its pre-COVID levels.

The company has a market capitalisation of $5.9 billion.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Woman and man calculating a dividend yield.
Share Market News

What ASX 200 investors just learned about the next RBA interest rate move

Will ASX 200 investors get a much-awaited interest rate cut in August?

Read more »

person with large headphones looking puzzled holding their hand to their chin.
Broker Notes

Does Macquarie prefer Harvey Norman or JB Hi-Fi shares?

Both companies have market-beating long-term track records.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A young man sits at his desk with a laptop and documents with a gas heater visible behind him as though he is considering the information in front of him. about the BHP share price
Broker Notes

Leading broker has just downgraded BHP shares. Is it time to sell?

Macquarie sees little upside. But why?

Read more »

A blockchain investor sits at his desk with a laptop computer open and a phone checking information from a booklet in a home office setting.
Broker Notes

Are non-bank lenders a lucrative alternative to the big 4 banks?

The big 4 banks are widely perceived as being fully valued or overvalued.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why CBA, Inghams, Praemium, and Strike Energy shares are tumbling today

These shares are having a tough time on Tuesday. But why?

Read more »

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.
Broker Notes

3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

Read more »

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Broker Notes

Why Bell Potter is bullish on this incredible ASX 200 share

This blue chip could be a strong long-term buy according to the broker.

Read more »