Why the Transurban (ASX:TCL) share price is in focus

The Transurban Group (ASX: TCL) share price will be on watch in early trade after a quarterly update from the Aussie toll road operator.

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The Transurban Group (ASX: TCL) share price is one to watch in early trade after a quarterly update from the Aussie toll road operator.

asx share price on watch represented by investor peering over top of bench

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Why is the Transurban share price on watch?

Transurban's March 2021 quarter was headlined by average daily traffic (ADT) increasing 1.1% in 2020 while falling 3.8% compared to 2019 numbers.

Notably, traffic in Sydney recovered to pre-COVID-19 levels as restrictions were broadly lifted for the duration of the quarter. Sydney ADT increased by 21.8% to 936,000 trips with average workday traffic up 20.1%. Average weekend/public holiday traffic increased by 28.1% for the quarter. Both car and large vehicle traffic increased overall traffic numbers across Sydney's major roads.

Brisbane was another strong market for Transurban during the quarter. Quarterly ADT volumes in Brisbane climbed 3.3% to 403,000 trips with average workday traffic up 2.8%.

The Transurban share price will be worth watching after the company reported a mixed set of numbers across its portfolio. While Sydney and Brisbane performed strongly amid weakened restrictions, Melbourne and North America struggled. Traffic numbers were down across both regions as restrictions and reduced movement persisted.

Melbourne ADT was down 15.2% to 675,000 transactions with average workday traffic down 15.3%. Transurban cited periods of lockdown as a key factor in the softer numbers.

North America ADT fell 26.9% to 101,000 trips during the period with lower numbers in Washington, Virginia and Montreal.

The Transurban share price has climbed 7.3% higher in the last 12 months and boasts a $37.8 billion market capitalisation. Shares in the Aussie toll road operator were smashed in the March 2020 bear market as investors tried to price in the impacts of coronavirus restrictions and widespread work from home orders.

Foolish takeaway

The Transurban share price will be in focus today after a mixed set of traffic numbers in this morning's update. Stronger Sydney and Brisbane numbers were offset by lower figures across Melbourne and North American markets for the quarter.

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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