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Bear of the Day: Grupo Aeroportuario Del Pacifico (PAC)

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In the long haul, Grupo Aeroportuario Del Pacífico (PAC - Free Report)  may remain a very intriguing investment to consider, but there could be much better buying opportunities ahead, and the plausibility of some added selling pressure.

Notably, GAP was constituted as part of the process of opening up the private investment in the Mexican airport system, but faith in the companies' compelling enhancement will need to be taken with a grain of salt, or better stated, "poco a poco" (little by little).

That said, there is naturally a lot on the line for a stock that has spiked nearly +50% in the last year and trades over $270 a share.

With it noteworthy that GAP has been known to disappoint Wall Street’s forecast, PAC shares land a Zacks Rank #5 (Strong Sell) at the moment and is the Bear of the Day as its Q4 report approaches later in the month.

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GAP’s Execution Usually Lags Expectations

Scheduled to report Q4 2025 results on Monday, February 23, GAP has a track record of persistent underperformance relative to expectations.   

For the most part, revenue usually comes in slightly below forecasts, while costs have risen faster than analysts anticipated, compressing margins and pulling EPS below consensus.

The chronic earnings misses may eventually serve as a serious cause for concern as GAP has now missed bottom-line expectations for seven consecutive quarters, posting an average EPS surprise of -6% in its last four quarterly reports.

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Declining EPS Revisions & Slower Revenue Growth

Although GAP’s EPS is still expected to be up 7% for FY25 and is projected to increase another 27% this year to an enticing $13.14 per share, it’s worth noting that revisions are noticeably lower over the last 60 days, falling over 2% and nearly 1%, respectively.

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While GAP’s EPS trajectory is still respectable, the prospects of realistically reaching these lofty expectations may become slimmer considering the company’s track record and that FY26 sales are projected to slow to a growth rate of 4%.

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Bottom Line

It wouldn’t be surprising if Grupo Aeroportuario Del Pacifico disappoints in regards to its quarterly expectations again.

The trend of declining EPS revisions is starting to serve as a reminder of such, and at some point, investors could begin to lose patience with PAC shares. This could potentially lead to more selling pressure, even with PAC trading at a reasonable 21X forward earnings multiple.


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