Algonquin Power & Utilities (NYSE:AQN) Releases Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Algonquin Power & Utilities (NYSE:AQN) announced its quarterly earnings data on Friday. The utilities provider reported $0.13 EPS for the quarter, beating the consensus estimate of $0.11 by $0.02, Zacks reports. The firm had revenue of $713.69 million for the quarter, compared to analyst estimates of $713.69 million. Algonquin Power & Utilities had a return on equity of 5.47% and a net margin of 7.32%.During the same period in the prior year, the company earned $0.14 EPS.

Here are the key takeaways from Algonquin Power & Utilities’ conference call:

• Company reported multiple regulatory wins, including a New England Gas settlement and a CPUC-approved CalPeco Electric decision that yields $48.6 million in annualized revenues and $60.7 million of retroactive revenue, while Empire Electric has a settlement that could unlock $97 million subject to customer performance metrics.
• First-quarter results slipped year-over-year with GAAP net earnings of $83.1 million (vs. $92.8M) and adjusted net earnings of $99.6 million (vs. $109M), with adjusted EPS of $0.13, driven by non-recurrence of prior-year depreciation/tax benefits, slightly unfavorable weather, and higher wildfire insurance costs.
• Balance sheet and near-term financing are being managed proactively—credit ratings remain in the triple-B/Baa2 range and the company plans to refinance ~$1.15 billion of unsecured notes via a 144A bond, supported by a $1.15 billion delayed-draw credit facility.
• Management is implementing operational improvements — updated procedures, training for damage prevention and leak response, independent QA/QC for line locating, and improved billing accuracy in Missouri — aimed at reducing safety and customer-service risk.
• The company is exploring tax optimization including a potential redomicile and has requested an IRS private letter ruling (expected 6–9 months), but no board or shareholder decisions have been made.

Algonquin Power & Utilities Stock Down 3.2%

Shares of AQN stock traded down $0.20 during mid-day trading on Friday, reaching $6.08. 7,607,622 shares of the company’s stock traded hands, compared to its average volume of 3,340,635. Algonquin Power & Utilities has a 12 month low of $5.32 and a 12 month high of $7.11. The company has a market cap of $4.68 billion, a P/E ratio of 26.42 and a beta of 0.74. The company has a quick ratio of 0.82, a current ratio of 1.00 and a debt-to-equity ratio of 1.27. The company’s 50-day moving average price is $6.37 and its 200-day moving average price is $6.26.

Algonquin Power & Utilities Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, April 15th. Stockholders of record on Tuesday, March 31st were issued a dividend of $0.065 per share. This represents a $0.26 dividend on an annualized basis and a dividend yield of 4.3%. The ex-dividend date was Tuesday, March 31st. Algonquin Power & Utilities’s payout ratio is 113.04%.

Analysts Set New Price Targets

Several equities analysts have recently commented on the company. Weiss Ratings upgraded Algonquin Power & Utilities from a “hold (c-)” rating to a “hold (c)” rating in a research report on Tuesday, April 21st. National Bank Financial reduced their price target on Algonquin Power & Utilities from $7.50 to $7.25 and set an “outperform” rating on the stock in a research report on Monday, March 9th. Zacks Research lowered Algonquin Power & Utilities from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 9th. Desjardins reduced their price target on Algonquin Power & Utilities from $7.25 to $7.00 and set a “buy” rating on the stock in a research report on Monday, March 9th. Finally, TD Cowen reduced their price target on Algonquin Power & Utilities from $6.50 to $6.00 and set a “hold” rating on the stock in a research report on Monday, March 9th. Six equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat, Algonquin Power & Utilities presently has an average rating of “Hold” and an average price target of $6.68.

Institutional Trading of Algonquin Power & Utilities

A number of hedge funds have recently modified their holdings of AQN. Goldman Sachs Group Inc. boosted its holdings in shares of Algonquin Power & Utilities by 65.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 12,205,756 shares of the utilities provider’s stock valued at $62,738,000 after buying an additional 4,808,539 shares in the last quarter. Envestnet Asset Management Inc. bought a new stake in shares of Algonquin Power & Utilities during the 2nd quarter valued at $85,000. American Century Companies Inc. raised its stake in Algonquin Power & Utilities by 8.4% during the second quarter. American Century Companies Inc. now owns 240,683 shares of the utilities provider’s stock valued at $1,377,000 after buying an additional 18,752 shares during the last quarter. Russell Investments Group Ltd. raised its stake in Algonquin Power & Utilities by 15.9% during the second quarter. Russell Investments Group Ltd. now owns 120,708 shares of the utilities provider’s stock valued at $691,000 after buying an additional 16,552 shares during the last quarter. Finally, Marshall Wace LLP raised its stake in Algonquin Power & Utilities by 465.0% during the second quarter. Marshall Wace LLP now owns 106,046 shares of the utilities provider’s stock valued at $608,000 after buying an additional 87,276 shares during the last quarter. Institutional investors own 62.28% of the company’s stock.

Algonquin Power & Utilities Company Profile

Algonquin Power & Utilities Corp (NYSE: AQN) is a diversified generation, transmission and distribution utility company headquartered in Oakville, Ontario. Established in 1988, the firm operates through two primary business segments: Regulated Utilities and Renewable Energy. Its Regulated Utilities segment comprises electric, natural gas and water distribution networks serving residential, commercial and industrial customers across North America, while its Renewable Energy portfolio includes hydroelectric, solar, wind and thermal generation facilities.

The company’s renewable energy assets span multiple jurisdictions in Canada and the United States, reflecting its strategy to expand clean power capacity in regions with supportive regulatory frameworks.