TransAlta (NYSE:TAC) Announces Quarterly Earnings Results

Key Points

• TransAlta reported quarterly EPS of $0.13, exceeding the consensus estimate of $0.05 by $0.08. The company posted an 8.85% return on equity but a negative 2.76% net margin.
• Shares opened at $12.72 and were down 2.0%, with a market capitalization of approximately $4.02 billion and a debt-to-equity ratio of 3.64.
• TransAlta declared a quarterly dividend of C$0.07, equivalent to C$0.28 annually and a 2.2% yield. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $24.50.

TransAlta (NYSE:TAC - Get Free Report) TSE: TA posted its quarterly earnings data on Tuesday. The utilities provider reported $0.13 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.08, Zacks reports. TransAlta had a positive return on equity of 8.85% and a negative net margin of 2.76%.

TransAlta Trading Down 2.0%

NYSE TAC opened at $12.72 on Tuesday. The firm has a market cap of $4.02 billion, a PE ratio of -70.69 and a beta of 0.73. TransAlta has a 1-year low of $11.38 and a 1-year high of $17.81. The stock has a 50-day moving average of $12.40 and a 200-day moving average of $12.94. The company has a current ratio of 0.84, a quick ratio of 0.77 and a debt-to-equity ratio of 3.64.

TransAlta Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, January 1st. Stockholders of record on Tuesday, December 1st will be paid a C$0.07 dividend. This represents a $0.28 dividend on an annualized basis and a dividend yield of 2.2%. The ex-dividend date of this dividend is Tuesday, December 1st. TransAlta's payout ratio is -105.56%.

Wall Street Analysts Forecast Growth

TAC has been the subject of a number of research reports. Zacks Research raised shares of TransAlta from a "strong sell" rating to a "hold" rating in a research report on Monday, August 17th. Weiss Ratings upgraded shares of TransAlta from a "sell (d+)" rating to a "hold (c-)" rating in a research report on Thursday, October 8th. BMO Capital Markets reaffirmed an "outperform" rating on shares of TransAlta in a research note on Monday, August 3rd. Finally, Canadian Imperial Bank of Commerce reaffirmed an "outperform" rating on shares of TransAlta in a research note on Friday, July 17th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $24.50.

TransAlta Company Profile

TransAlta Corporation is a Canada-based power generation and wholesale marketing company headquartered in Calgary, Alberta. The company develops, owns and operates a diversified portfolio of electricity-generating facilities, including hydroelectric, wind, solar, natural gas and coal-fired power assets.

TransAlta supplies electricity to utilities, commercial and industrial customers, and wholesale markets. Its activities include power generation, energy marketing, asset management and the development of renewable energy projects.

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