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GAP Reports Q3 2024 Results: Acquisition and Revenue Growth

Alpha InspirationMonday, Oct 21, 2024 10:11 pm ET

1min read

In the third quarter of 2024, Grupo Aeroportuario del Pacífico (GAP) reported its financial results, highlighting the impact of its strategic initiatives and the acquisition of Guadalajara World Trade Center (GWTC). This article delves into the key drivers behind GAP's earnings changes, the impact of the GWTC acquisition, and the analysts' revised forecasts for the upcoming quarters.

GAP's earnings in Q3 2024 showed a significant increase compared to the same period last year. The company's net sales reached MXN 8,495 million, a 12% increase year-over-year. Earnings before tax (EBT) also grew by 11% to MXN 3,392 million. These positive results can be attributed to several key drivers:

1. Passenger traffic and aircraft movements: GAP experienced a 10% increase in passenger traffic and a 9% increase in aircraft movements compared to Q2 2024. This growth contributed to the overall revenue increase in Q3 2024.
2. Currency exchange rates: The favorable exchange rate between the Mexican peso and other major currencies positively impacted GAP's revenue performance during this period.
3. Acquisition of GWTC: The acquisition of 51.5% of GWTC's shares in June 2024 contributed to GAP's revenue growth in Q3 2024. The integration of GWTC's operations and synergies resulted in additional revenue streams for GAP.
4. Cost-cutting measures: GAP implemented cost-cutting measures and increased operational efficiency, which helped improve its revenue growth and profitability in Q3 2024.

Analysts have revised their forecasts for GAP's earnings in the upcoming quarters, reflecting the company's strategic initiatives and the positive impact of the GWTC acquisition. The revised forecasts indicate an expected increase in earnings per share (EPS) for the remainder of 2024 and into 2025. This positive outlook is a testament to GAP's successful execution of its strategic plans and the potential for future growth.

In conclusion, GAP's Q3 2024 results demonstrate the company's strong financial performance, driven by increased passenger traffic, favorable currency exchange rates, the successful integration of GWTC, and cost-cutting measures. The analysts' revised forecasts reflect the company's strategic initiatives and the potential for continued growth in the coming quarters. As GAP continues to execute its plans and adapt to the changing market landscape, investors can expect the company to maintain its competitive edge in the aerospace industry.

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MrJSSmyth

10/22

This morning, the market experienced some red flag news during the opening. Traders should be cautious as it may significantly impact the market's performance. A gap fill occurred between the post-market and pre-market hours. My analysis indicates an 80% chance that the gap will fill within three trading days. In my previous post, I mentioned that the 1H timeframe was pulling back to retest the CHoCH line with an anticipated move towards the all-time high (ATH), which is what we saw during the pre-market explosion. Trade Strategy 1: Price has already broken above its current support line and will likely displace approximately .25, then retest the line. Rejection off this line will turn it into support and the price will continue higher. Trading on the retest of the resistance line offers the highest profitability trade, but it also carries the highest risk. Alternatively, taking the trade on the retest of the break of structure presents the highest probability trade, albeit with lower profits. Trade Strategy 2: If the price falls below the resistance lines and continues towards the support line, we'll be in a ranging market. I expect us to range around this level for a few hours before making an explosive move in either direction. My bias would be towards the lower level to start the move and fill the gap. When playing a ranging market, I prefer to enter long no more than 1/3 of the way into the range from the support line, and vice versa from the resistance. It's crucial to always cut the trade before the touch of the opposite line, as a clean touch is not guaranteed. Trade Strategy 3: If the price makes a strong downward move towards the gap to start filling it, the 80% rule on gap fills is not arbitrary; I've spent considerable time researching it over the past couple of years. If it doesn't fill by the close of business on the third day, I'll abandon the gap fill idea. Until then, my bias is that it will move in that direction after a brief consolidation. The 1H timeframe is an excellent indicator of market sentiment. As you can see in the provided picture, price tends to stall at the previous consolidation zones, which is what we're entering now. This gives me confidence that we'll consolidate for a few hours before the next significant move. Remember, the market does what it wants, and I'm merely using the patterns it presents to build my thesis. I'll likely wait 15-30 minutes before making a trade today, and due to the gap, my bias is towards short-term trading. Safe trading to all! For more of these types of analyses, follow me on r/LNCtrading.

user74729582

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