Analysts Set Expectations for TransAlta FY2025 Earnings

Key Points

• National Bank Financial has reduced its FY2025 earnings per share estimate for TransAlta from $0.16 to $0.12, while the current consensus estimate is $0.41.
• TransAlta recently declared an increased quarterly dividend of $0.065, up from $0.05, reflecting a 2.2% dividend yield.
• Despite a recent earnings report that exceeded expectations, TransAlta's stock has shown a 3.4% decline in price, currently trading at $12.09.

TransAlta Corporation (NYSE:TAC - Free Report) TSE: TA - Analysts at National Bank Financial dropped their FY2025 earnings estimates for shares of TransAlta in a report issued on Monday, August 4th. National Bank Financial analyst P. Kenny now expects that the utilities provider will post earnings per share of $0.12 for the year, down from their previous forecast of $0.16. The consensus estimate for TransAlta's current full-year earnings is $0.41 per share.

A number of other equities analysts have also commented on TAC. Royal Bank Of Canada lowered their price target on shares of TransAlta from $23.00 to $20.00 and set an "outperform" rating on the stock in a research report on Thursday, May 8th. TD Securities reaffirmed a "buy" rating and issued a $20.00 price target (up previously from $19.00) on shares of TransAlta in a research note on Tuesday. Jefferies Financial Group upgraded shares of TransAlta from a "hold" rating to a "buy" rating in a research report on Thursday, June 12th. National Bankshares restated an "outperform" rating on shares of TransAlta in a research note on Tuesday. Finally, Wall Street Zen raised TransAlta from a "sell" rating to a "hold" rating in a research note on Saturday, June 14th. Two investment analysts have rated the stock with a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $19.88.

TransAlta Stock Performance

NYSE TAC traded up $0.08 during trading on Wednesday, reaching $12.10. 1,034,231 shares of the company's stock were exchanged, compared to its average volume of 1,196,172. The company has a debt-to-equity ratio of 4.98, a current ratio of 0.79 and a quick ratio of 0.78. TransAlta has a fifty-two week low of $7.82 and a fifty-two week high of $14.64. The business has a 50 day moving average price of $11.34 and a 200-day moving average price of $10.26. The stock has a market capitalization of $3.59 billion, a P/E ratio of -28.81 and a beta of 0.75.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA last released its quarterly earnings data on Friday, August 1st. The utilities provider reported $0.13 earnings per share for the quarter, beating the consensus estimate of $0.07 by $0.06. The business had revenue of $451.20 million for the quarter, compared to analysts' expectations of $473.94 million. TransAlta had a negative return on equity of 2.06% and a negative net margin of 6.79%.

TransAlta Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, October 1st. Shareholders of record on Monday, September 1st will be issued a dividend of $0.065 per share. This represents a $0.26 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date of this dividend is Friday, August 29th. This is a boost from TransAlta's previous quarterly dividend of $0.05. TransAlta's payout ratio is presently -45.24%.

Institutional Trading of TransAlta

A number of hedge funds and other institutional investors have recently bought and sold shares of TAC. NBC Securities Inc. increased its stake in TransAlta by 145,600.0% in the 1st quarter. NBC Securities Inc. now owns 2,914 shares of the utilities provider's stock worth $27,000 after acquiring an additional 2,912 shares during the last quarter. Caitong International Asset Management Co. Ltd raised its position in shares of TransAlta by 48,666.7% during the 1st quarter. Caitong International Asset Management Co. Ltd now owns 4,389 shares of the utilities provider's stock valued at $41,000 after buying an additional 4,380 shares in the last quarter. Tobam grew its position in TransAlta by 239.2% in the first quarter. Tobam now owns 10,943 shares of the utilities provider's stock worth $102,000 after acquiring an additional 7,717 shares in the last quarter. Entropy Technologies LP bought a new position in shares of TransAlta during the 1st quarter valued at about $119,000. Finally, Savant Capital LLC purchased a new stake in TransAlta in the second quarter worth approximately $127,000. Institutional investors own 59.00% of the company's stock.

TransAlta Company Profile

TransAlta Corporation engages in the development, production, and sale of electric energy. It operates through Hydro, Wind and Solar, Gas, Energy Transition, and Energy Marketing segments. The Hydro segment holds interest of approximately 922 megawatts (MW) of owned hydroelectric generating capacity located in Alberta, British Columbia, and Ontario.