Own Sydney Airport (ASX:SYD) shares? Here’s what to look for during reporting season

What to watch from the Aussie airport operator in August
The post Own Sydney Airport (ASX:SYD) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia. –

The August reporting season is almost upon us. That means owners of Sydney Airport Holdings Pty Ltd (ASX: SYD) shares have a few things to keep an eye on next month.

What to watch if you own Sydney Airport shares

August can be somewhat overwhelming if you own lots of ASX shares. I always find that it’s easier to narrow in on a few key factors in order to stay focused on what matters.

I think it pays to think about what is impacting Sydney Airport shares right now. COVID-19 lockdowns, state and national border closures and the recent failed takeover bid are a few that spring to mind.

Sydney Airport generates revenue from aviation, retail, property and car rentals, as well parking and ground transport. That means anything that influences these revenue streams will impact future earnings expectations, and therefore the value of Sydney Airport shares.

Clearly, the COVID-19 pandemic has uprooted the status quo for Sydney Airport. Revenue across all sources plummeted in FY2020 with widespread lockdowns and borders remaining shut. So, what can investors look out for in August?

Outlook for the travel industry

I personally think it pays to look across a broad range of the industry. For instance, keeping an eye on results from travel agents like Webjet Limited (ASX: WEB) can help to paint a picture of expectations for FY2022 traffic numbers.

It follows for a company like Sydney Airport that more travellers are likely to lead to more demand for retail, property and car rentals, as well as parking and ground transport. More traffic means higher earnings and that’s good news for Sydney Airport shares.

The key for Sydney Airport is really how quickly restrictions ease and borders open. That’s tough to determine right now, but management commentary from the company itself and other travel industry stakeholders could be useful.

I’d keep an eye on results from the major airlines right now. That means watching out for Qantas Airways Limited (ASX: QAN) and Regional Express Holdings Ltd (ASX: REX) results in August. Any notable commentary on expectations for FY2022 could drive Sydney Airport shares in either direction next month.

Acquisition updates

The other looming factor is Sydney Airport’s status as an acquisition target. Sydney Airport shares surged by 34% in early July after a $22 billion takeover bid by an IFM Investors-led consortium.

Any news, positive or negative, or further takeover offers, look like a major factor in moving Sydney Airport’s value. We saw from the early July surge that this is likely to cause the biggest value swing. I’d be watching closely to see who is circling Sydney Airport and whether any bids will move the company’s share price in August.

The post Own Sydney Airport (ASX:SYD) shares? Here’s what to look for during reporting season appeared first on The Motley Fool Australia.

Should you invest $1,000 in Sydney Airport right now?

Before you consider Sydney Airport, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Sydney Airport wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of May 24th 2021

More reading

The Qantas (ASX:QAN) share price gained 3% on Tuesday morning
Plumbing, health, tech: 3 ASX shares to buy for instant diversification

How do you value the Sydney Airport (ASX:SYD) share price?
ASX 200 travel shares face new headwinds as Kiwi bubble policy tightens

ASX 200 Weekly Wrap: Just like that… ASX back to record highs

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!