The Transurban Group (ASX: TCL) share price is in the green this morning after the company posted record earnings and traffic, and bolstered its full-year dividend guidance, as The Motley Fool Australia reported earlier.
However, market watchers might still be wary of a leadership reshuffle. The company today announced its long-term CEO and executive director Scott Charlton will step down at the end of the year.
Right now, the Transurban share price is trading 0.71% higher at $14.13.
Let's take a closer look at what's going on with the S&P/ASX 200 Index (ASX: XJO) toll road operator on Tuesday.
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Transurban share price slumps on CEO exit
The Transurban share price has so far defied Citi's expectations of a slump today, instead gaining amid the planned exit of its CEO.
Charlton has held the company's top spot for 11 years. He stood at the helm as it grew its assets from six to 22 tollroads and its market capitalisation to over $43 billion, Transurban chair Craig Drummond commented.
Citi analyst Suraj Nebhani said Charlton's exit "will be seen as a loss for Transurban investors", The Australian reports. Though, the broker is said to still tip Transurban shares as a buy with a $15.70 price target.
Meanwhile, Goldman Sachs has retained its sell rating on the stock despite the company's free cash flow and dividend guidance surprising on the upside. The broker has a $13.50 price target on the stock.
Charlton didn't give a reason for his departure. However, he said he remains "confident in Transurban's future".
A global search for a new CEO is underway, supported by recruitment firm Russell Reynolds.
Meanwhile, Transurban announced it will sell a 50% interest in its Canadian A25 asset to global investment group CDPQ for around $384 million ($355 million Canadian). Charlton said:
Both parties are aligned on the long-term aspirations for the North American market and we look forward to pursuing new opportunities together.
First-half earnings recap
In case you missed it, Transurban posted a $55 million profit for the first half of financial year 2023, up from a previous $106 million loss.
It also revealed record proportional toll revenue – coming in at $1.66 billion – and proportional earnings before interest, tax, depreciation, and amortisation (EBITDA) of $1.24 billion.
The company bumped its full-year dividend guidance to 57 cents per share – up from 41 cents per share last fiscal year.
