What Happened to Macquarie Atlas Roads’ Share Price?
The share price of toll road operator Macquarie Atlas Roads Ltd [ASX:MQA] rallied by 0.59% today as the Australian stock market inched ahead. Earlier in the session it traded up by more than 2%. Macquarie Atlas shares have been a consistently strong performer, gaining 63% in the last 12 months.
Why Did This Happen to MQA Shares?
This morning Macquarie Atlas Roads announced that its revenue for the quarter ending 30 June 2014 was 4.2% higher than the previous corresponding period.
With weighted average traffic for the period up just 3%, it looks like the company is achieving higher average toll rates.
That likely means stronger margins and higher profits – which is why investors have bid up the MQA price today.
What Now For Macquarie Atlas Roads Ltd?
Macquarie offers diverse toll road exposure across the United States, France, Germany and Britain. The company certainly seems confident in its outlook, judging by today’s results and its plans to boost its stake in French toll operator Autoroutes Paris-Rhin-Rhône.
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Another flare-up of the severe weather conditions that the US endured last year could hurt the business. But with the company reporting strong revenues and profits, its future is looking rosy.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
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The post Why the Macquarie Atlas Roads Share Price Rose Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
