Algonquin Power & Utilities (NYSE:AQN) Issues Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Algonquin Power & Utilities beat earnings expectations, reporting $0.13 EPS versus the $0.11 consensus, while revenue came in exactly as expected at $713.69 million.
• Management highlighted several regulatory wins, including a New England Gas settlement and a CPUC-approved CalPeco Electric decision that could add $48.6 million in annualized revenue and $60.7 million in retroactive revenue.
• The company also said it is managing its balance sheet proactively, planning to refinance about $1.15 billion of unsecured notes, while shares fell 3.2% on the day and analysts’ consensus rating remains Hold.

Algonquin Power & Utilities (NYSE:AQN - Get Free Report) issued its earnings results on Friday. The utilities provider reported $0.13 earnings per share for the quarter, topping analysts' consensus estimates of $0.11 by $0.02, Zacks reports. The firm had revenue of $713.69 million during the quarter, compared to analysts' expectations of $713.69 million. Algonquin Power & Utilities had a net margin of 7.32% and a return on equity of 5.47%. During the same period last year, the firm posted $0.14 earnings per share.

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 on Friday, hitting $6.08. The company's stock had a trading volume of 7,607,622 shares, compared to its average volume of 3,340,635. The company has a debt-to-equity ratio of 1.27, a current ratio of 1.00 and a quick ratio of 0.82. Algonquin Power & Utilities has a fifty-two week low of $5.32 and a fifty-two week high of $7.11. The firm's fifty day moving average price is $6.37 and its 200-day moving average price is $6.26. The stock has a market capitalization of $4.68 billion, a price-to-earnings ratio of 26.42 and a beta of 0.74.

Algonquin Power & Utilities Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a $0.065 dividend. This represents a $0.26 annualized dividend and a dividend yield of 4.3%. The ex-dividend date of this dividend was Tuesday, March 31st. Algonquin Power & Utilities's payout ratio is presently 113.04%.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on AQN. TD Cowen reduced their target price on shares of Algonquin Power & Utilities from $6.50 to $6.00 and set a "hold" rating for the company in a report on Monday, March 9th. Raymond James Financial upgraded shares of Algonquin Power & Utilities from a "market perform" rating to an "outperform" rating and raised their target price for the stock from $6.50 to $7.25 in a report on Monday, March 9th. Zacks Research cut shares of Algonquin Power & Utilities from a "strong-buy" rating to a "hold" rating in a report on Monday, March 9th. Weiss Ratings raised shares of Algonquin Power & Utilities from a "hold (c-)" rating to a "hold (c)" rating in a research note on Tuesday, April 21st. Finally, Canadian Imperial Bank of Commerce raised their price objective on shares of Algonquin Power & Utilities from $6.25 to $6.50 and gave the stock a "neutral" rating in a research note on Monday, April 20th. Six analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $6.68.

Institutional Investors Weigh In On Algonquin Power & Utilities

Several institutional investors and hedge funds have recently modified their holdings of AQN. Quarry LP acquired a new stake in shares of Algonquin Power & Utilities in the 3rd quarter valued at $29,000. Group One Trading LLC lifted its stake in shares of Algonquin Power & Utilities by 63.3% in the 4th quarter. Group One Trading LLC now owns 7,479 shares of the utilities provider's stock valued at $46,000 after purchasing an additional 2,900 shares during the last quarter. NewEdge Advisors LLC acquired a new stake in shares of Algonquin Power & Utilities in the 4th quarter valued at $47,000. Vise Technologies Inc. acquired a new stake in shares of Algonquin Power & Utilities in the 3rd quarter valued at $56,000. Finally, Tudor Investment Corp ET AL acquired a new stake in shares of Algonquin Power & Utilities in the 4th quarter valued at $62,000. Institutional investors and hedge funds own 62.28% of the company's stock.

About Algonquin Power & Utilities

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.

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