Algonquin Power & Utilities (NYSE:AQN) Issues Earnings Results, Beats Estimates By $0.01 EPS

Key Points

• Algonquin reported adjusted EPS of $0.11, beating the $0.10 consensus estimate and rising from $0.09 a year earlier. Adjusted earnings increased to $88.1 million, although GAAP earnings declined to $57.6 million from $71 million.
• Management reaffirmed adjusted EPS guidance of $0.35–$0.37 for 2026 and $0.38–$0.42 for 2027; the 2027 midpoint is slightly below analyst consensus.
• The company declared a quarterly dividend of $0.065 per share, equivalent to $0.26 annualized and a reported yield of 4.7%.

Algonquin Power & Utilities (NYSE:AQN - Get Free Report) announced its quarterly earnings results on Friday. The utilities provider reported $0.11 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.01, Zacks reports. Algonquin Power & Utilities had a net margin of 5.77% and a return on equity of 5.16%. Algonquin Power & Utilities updated its FY 2027 guidance to 0.380-0.420 EPS and its FY 2026 guidance to 0.350-0.370 EPS.

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

• Third-quarter adjusted earnings rose to $88.1 million from $69 million a year earlier, with adjusted EPS up two cents to $0.11, helped by favorable weather and new rates. GAAP earnings declined to $57.6 million from $71 million.
• Management reaffirmed adjusted EPS guidance of $0.35–$0.37 for 2026 and $0.38–$0.42 for 2027, and said it does not expect to issue equity through 2027; liquidity stood at $1.2 billion.
• Algonquin filed a Large Load Tariff for Empire Electric Missouri, designed to support potential large customers while protecting existing customers. The tariff still needs regulatory approval, and the company disclosed no customer commitments or specific investment plans.
• The planned U.S. redomicile remains on track for the first half of 2027, subject to approvals, and is expected to generate an annualized adjusted EPS benefit of $0.02–$0.03, with a partial benefit beginning in 2027.
• Year-to-date operating, depreciation, and other expenses increased by $29 million, including $24.8 million in higher gas operating expenses. Management said cost-reduction efforts are underway but expects further work to bring O&M toward its low-to-mid-30% target as a share of gross revenue.

Algonquin Power & Utilities Stock Performance

Algonquin Power & Utilities stock traded down $0.12 during mid-day trading on Friday, hitting $5.51. 13,183,871 shares of the company's stock traded hands, compared to its average volume of 3,597,342. Algonquin Power & Utilities has a one year low of $4.91 and a one year high of $7.11. The firm has a 50 day moving average price of $5.32 and a 200 day moving average price of $5.94. The company has a quick ratio of 0.69, a current ratio of 0.88 and a debt-to-equity ratio of 1.28. The company has a market cap of $4.25 billion, a PE ratio of 17.53 and a beta of 0.73.

Algonquin Power & Utilities Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Friday, January 15th. Shareholders of record on Thursday, December 31st will be paid a dividend of $0.0650 per share. The ex-dividend date of this dividend is Thursday, December 31st. This represents a $0.26 annualized dividend and a yield of 4.7%. Algonquin Power & Utilities's payout ratio is presently 136.84%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the company. TD set a $6.00 target price on Algonquin Power & Utilities and gave the stock a "hold" rating in a research report on Monday, August 31st. Canadian Imperial Bank of Commerce decreased their price objective on shares of Algonquin Power & Utilities from $6.00 to $5.75 and set a "neutral" rating on the stock in a report on Wednesday, October 28th. Huntington started coverage on Algonquin Power & Utilities in a report on Monday, September 14th. They issued an "outperform" rating and a $7.00 price target for the company. Barclays dropped their price objective on shares of Algonquin Power & Utilities from $7.00 to $6.00 and set an "overweight" rating for the company in a research note on Thursday, October 1st. Finally, Weiss Ratings cut Algonquin Power & Utilities from a "hold (c-)" rating to a "sell (d+)" rating in a research note on Thursday, October 8th. Seven equities research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Algonquin Power & Utilities currently has an average rating of "Hold" and an average target price of $6.59.

Key Stories Impacting Algonquin Power & Utilities

Here are the key news stories impacting Algonquin Power & Utilities this week:

• Positive Sentiment: Third-quarter adjusted earnings were $0.11 per share, beating the $0.10 analyst consensus and rising from $0.09 a year earlier. Revenue also beat estimates, and the company reported $57.6 million in GAAP net earnings. Algonquin Power & Utilities Q3 Earnings and Revenues Beat Estimates
• Neutral Sentiment: For 2026, AQN guided to adjusted EPS of $0.35–$0.37, a range centered on the $0.36 consensus estimate. It also declared a quarterly common-share dividend of US$0.065 per share, payable January 15, 2027. Third Quarter 2026 Financial Results Fourth Quarter 2026 Dividend Declaration
• Negative Sentiment: 2027 adjusted EPS guidance is $0.38–$0.42, with a $0.40 midpoint slightly below the $0.41 consensus, which could weigh on expectations for earnings growth. Third Quarter 2026 Financial Results

Algonquin Power & Utilities Company Profile

Algonquin Power & Utilities Corp. is a Canadian utility company that owns and operates regulated electric, natural gas and water distribution businesses. Through its Liberty operating brands, the company provides essential utility services to residential, commercial and industrial customers in communities across the United States and Canada.

The company's regulated utility operations include electricity distribution and generation, natural gas distribution, and water and wastewater services.

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