The Aurizon Holdings Ltd (ASX: AZJ) share price powered through last quarter, besting the market’s performance by 5%.
As of the final close of the March quarter, the Aurizon share price was $3.69, 5.73% higher than where it started the period.
For comparison, the S&P/ASX 200 Index (ASX: XJO) managed to end the quarter in the green – just. It gained 0.74% over the three months ended 31 March.
Additionally, Aurizon’s sector – the S&P/ASX 200 Industrials Index (ASX: XNJ) – slumped 3.84% over that same time frame.
So, what drove Aurizon’s stock to outperform through the first quarter of 2022? Let’s take a look.
What boosted the Aurizon share price last quarter?
After suffering through a rough 2021, the Aurizon share price bounced into the new year.
Interestingly, its strong performance in the March quarter came despite no price-sensitive news inspiring it to gain.
In fact, the only price-sensitive news to hit the market – Aurizon’s first-half earnings – saw its share price dip 0.55%.
Over the six months ended 31 December, Aurizon’s revenue increased by 1% on the prior comparable period. Meanwhile, its earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 1%.
Aurizon also cut its dividend by 27% to maintain its credit rating ahead of its One Rail acquisition.
On top of that, the Aurizon share price might have been impacted by the company’s removal from the S&P/ASX 50 Index (ASX: XFL).
Its shares were dumped from the index on 21 March, replaced by those of Bluescope Steel Limited (ASX: BSL).
Finally, sentiment for Aurizon’s shares might have been boosted by demand for coal last quarter.
The company operates Australia’s largest coal rail network. It connects about 50 coal mines to three of Queensland’s major ports.
As The Motley Fool Australia reported last quarter, sanctions placed on Russia following its invasion of Ukraine disrupted global supply of the black rock.
That could have pushed other nations to turn to Australian coal to fill the gap.
The post The Aurizon share price had a stellar first quarter. Here’s why appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper 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 has recommended Aurizon Holdings Limited. 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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