TransAlta (TSE:TA) Announces Quarterly Earnings Results

TransAlta (TSE:TA) (NYSE:TAC) posted its quarterly earnings data on Tuesday. The company reported C$0.18 earnings per share (EPS) for the quarter, FiscalAI reports. The company had revenue of C$536.00 million for the quarter. TransAlta had a negative return on equity of 1.50% and a negative net margin of 1.02%.

TransAlta Price Performance

TA stock opened at C$18.52 on Wednesday. TransAlta has a 1 year low of C$15.62 and a 1 year high of C$24.60. The company has a debt-to-equity ratio of 238.01, a current ratio of 0.84 and a quick ratio of 0.61. The firm has a market capitalization of C$5.86 billion, a PE ratio of -59.74, a price-to-earnings-growth ratio of -0.07 and a beta of 0.31. The business has a 50 day simple moving average of C$17.44 and a 200-day simple moving average of C$17.98.

Analyst Upgrades and Downgrades

Separately, Canadian Imperial Bank of Commerce decreased their price target on shares of TransAlta from C$26.00 to C$24.50 in a research note on Tuesday, September 22nd. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus target price of C$24.61.

Key Stories Impacting TransAlta

Here are the key news stories impacting TransAlta this week:

• Positive Sentiment: TransAlta reported third-quarter profit of C$63 million, compared with a C$62 million loss a year earlier. Adjusted EPS of C$0.18 also exceeded the C$0.07 consensus, a strong earnings surprise that could be supporting the shares. Article: TransAlta reports $63M Q3 profit compared with $62M loss a year ago
• Positive Sentiment: The company outlined potential longer-term growth from its Boreal Technology Hub, which could serve up to 1.6 GW of load. It also is targeting $110 million in annual adjusted EBITDA from its Colorado acquisition, offering investors prospective earnings upside if achieved. Article: TransAlta anticipates Boreal Technology Hub load up to 1.6 GW while targeting $110M annual adjusted EBITDA from Colorado acquisition
• Neutral Sentiment: TransAlta is gathering community input on a potential data centre in Parkland County, Alberta. The project could create a significant source of power demand, but it remains under consideration and is not yet a confirmed development. Article: TransAlta gathering community input on potential new Parkland County data centre
• Negative Sentiment: Despite the profit improvement and adjusted EPS beat, quarterly revenue fell, a potential concern about the strength of underlying growth. Article: Correction: TransAlta Swings to Q3 Adjusted Net Earnings, Revenue Falls

Insider Buying and Selling

In related news, insider Michael Politeski acquired 5,000 shares of TransAlta stock in a transaction that occurred on Tuesday, September 15th. The shares were purchased at an average price of C$16.02 per share, for a total transaction of C$80,100.00. Following the completion of the transaction, the insider owned 90,000 shares in the company, valued at C$1,441,800. This represents a 5.88% increase in their position. Insiders own 0.21% of the company’s stock.

About TransAlta

TransAlta owns, operates and develops a diverse fleet of electrical power generation assets in Canada, the United States and Australia with a focus on long-term shareholder value. TransAlta provides municipalities, medium and large industries, businesses and utility customers with affordable, energy efficient and reliable power. Today, TransAlta is one of Canada’s largest producers of wind power and Alberta’s largest producer of thermal generation and hydro-electric power. For over 114 years, TransAlta has been a responsible operator and a proud member of the communities where we operate and where our employees work and live.