Brookfield Renewable Partners (NYSE:BEP) Issues Quarterly Earnings Results

Key Points

• Brookfield Renewable missed quarterly earnings expectations: It reported a loss of $0.37 per unit, compared with the consensus estimate of a $0.34 loss, despite net margins of 8.28% and return on equity of 1.57%.
• Underlying operations were strong: Second-quarter FFO increased 13% year over year to $421 million, while the company commissioned 1.3 GW of capacity, signed PPAs for 2.6 GW and committed or invested $5 billion in growth initiatives.
• Growth and corporate changes remain central: The $3 billion Aypa acquisition is expected to double battery capacity, while a proposed BEP-BEPC combination aims to improve liquidity and simplify reporting without changing dividends or ownership arrangements.

Brookfield Renewable Partners (NYSE:BEP - Get Free Report) TSE: BEP released its quarterly earnings results on Friday. The utilities provider reported ($0.37) earnings per share for the quarter, missing the consensus estimate of ($0.34) by ($0.03), Zacks reports. Brookfield Renewable Partners had a net margin of 8.28% and a return on equity of 1.57%.

Here are the key takeaways from Brookfield Renewable Partners' conference call:

• Record second-quarter results: FFO rose 13% year over year to $421 million, or $0.62 per unit, supported by strong operating performance, newly commissioned assets and capital recycling.
• Brookfield Renewable commissioned 1.3 GW of capacity, signed PPAs covering 2.6 GW, and deployed or committed $5 billion toward growth investments, while asset sales generated approximately $2.2 billion of proceeds at or above target returns.
• The acquisition of Aypa for $3 billion will double operating and under-construction battery capacity to roughly 6 GW and expand the development pipeline to more than 80 GW; management expects the deal to be immediately accretive.
• Westinghouse FFO increased more than 60% excluding a prior-year licensing fee, and the company received U.S. Department of Energy support for up to $17.5 billion in loan facilities tied to the potential deployment of up to 10 AP1000 reactors.
• Brookfield plans to combine BEP and BEPC into a single listed corporation, subject to approvals, with management expecting improved liquidity, broader investor access and simpler tax reporting without changes to dividends or Brookfield’s ownership and management arrangements.

Brookfield Renewable Partners Trading Up 0.7%

BEP traded up $0.23 during trading on Friday, reaching $32.89. The company had a trading volume of 1,036,176 shares, compared to its average volume of 818,484. The company has a quick ratio of 0.75, a current ratio of 0.75 and a debt-to-equity ratio of 0.82. The business has a 50 day simple moving average of $34.38 and a 200-day simple moving average of $32.70. The stock has a market cap of $9.87 billion, a P/E ratio of -106.09 and a beta of 1.10. Brookfield Renewable Partners has a 52 week low of $24.13 and a 52 week high of $38.12.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on BEP. TD Securities reiterated a "buy" rating and set a $39.00 target price on shares of Brookfield Renewable Partners in a research report on Monday, May 4th. Zacks Research lowered shares of Brookfield Renewable Partners from a "hold" rating to a "strong sell" rating in a research report on Friday, July 3rd. TD lifted their price objective on shares of Brookfield Renewable Partners from $38.00 to $39.00 and gave the stock a "buy" rating in a research note on Monday, May 4th. National Bank Financial boosted their target price on shares of Brookfield Renewable Partners from $36.00 to $39.00 and gave the stock an "outperform" rating in a report on Thursday, June 11th. Finally, UBS Group restated a "buy" rating and set a $40.00 target price (up from $39.00) on shares of Brookfield Renewable Partners in a research report on Friday, June 12th. Ten analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Brookfield Renewable Partners has an average rating of "Moderate Buy" and a consensus target price of $37.93.

Institutional Investors Weigh In On Brookfield Renewable Partners

Several institutional investors have recently made changes to their positions in the company. Kelleher Financial Advisors purchased a new position in shares of Brookfield Renewable Partners during the 3rd quarter worth about $26,000. Russell Investments Group Ltd. bought a new stake in Brookfield Renewable Partners in the second quarter worth about $34,000. Triumph Capital Management bought a new stake in Brookfield Renewable Partners in the third quarter worth about $55,000. UMB Bank n.a. purchased a new position in shares of Brookfield Renewable Partners during the fourth quarter valued at approximately $98,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in shares of Brookfield Renewable Partners by 57.7% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,835 shares of the utilities provider's stock valued at $103,000 after buying an additional 1,403 shares during the last quarter. Institutional investors own 63.16% of the company's stock.

Brookfield Renewable Partners Company Profile

Brookfield Renewable Partners L.P. is a leading global owner, operator and developer of renewable power assets. Listed on the New York Stock Exchange under the ticker BEP, the partnership focuses on generating clean electricity from a diversified mix of hydroelectric, wind, solar and energy storage facilities. As part of the Brookfield Asset Management group, Brookfield Renewable leverages a long-term, asset-backed approach to investing in sustainable energy projects that support the transition to a low-carbon economy.

The company’s platform encompasses approximately 23,000 megawatts of installed capacity across four continents.

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