AQN Earnings Prediction
The chart below shows how AQN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AQN sees a +3.21% change in stock price 10 days leading up to the earnings, and a -0.91% change 10 days following the report. On the earnings day itself, the stock moves by -3.13%. This data can give you a slight idea of what to expect for the next quarter's release.
AQN Key Earning Data
AQN Earnings Analysis
Positive
New CEO Appointment: Leadership Transition: The company has appointed Rod West as the new CEO, who brings over 25 years of experience and a strong vision for the future of Algonquin, focusing on creating sustainable value and improving operational performance.
Renewables Business Sale Proceeds: Successful Sale of Renewables Business: Algonquin completed the sale of its renewables business, expected to generate approximately $2.1 billion in proceeds, which will be used to reduce debt and strengthen the balance sheet.
Regulatory Approvals Impact: Regulatory Approvals: The company received several regulatory approvals for new rates in Missouri, Arkansas, and Gas New Brunswick, which will enhance revenue and operational efficiency.
Regulated EBITDA Increase: Increased Regulated EBITDA: The regulated adjusted EBITDA for Q4 was $234.4 million, up 2.4% from the previous year, driven by new rates and higher weather normalization adjustments.
Rate Base Increase: Growth in Rate Base: The company's rate base increased to approximately $7.8 billion, up from $7.2 billion a year earlier, reflecting prudent investments for customer benefit.
Operational Efficiency Commitment: Commitment to Operational Efficiency: Algonquin is focused on improving operational efficiency and customer service, aiming to close the gap between earned and authorized returns on equity (ROE).
Earnings Growth Opportunities: Future Growth Potential: The company sees significant opportunities for growth in earnings and rate base through prudent investments in its service territories, with a goal to improve earned ROE closer to the authorized 9.2%.
Negative
Earnings Miss Report: Algonquin Power & Utilities Corp. missed earnings expectations, reporting an EPS of $0.06 compared to the expected $0.10.
Adjusted Net Earnings Decline: The company experienced a decline in adjusted net earnings, with Q4 adjusted net earnings falling to $45.2 million from $81.3 million in the previous year.
Decline in Adjusted Earnings: Full-year adjusted net earnings also decreased to $232.1 million from $279.4 million in 2023, indicating a downward trend in profitability.
Q4 EBITDA Decline: Consolidated adjusted EBITDA for Q4 was $248.6 million, down 5.2% from the prior year, primarily due to a decline in the corporate segment.
Interest Expense Increase: The company reported an increase in interest expenses, which rose by $29 million year-over-year, impacting overall profitability.
Return on Equity Analysis: The earned return on equity (ROE) was significantly below the authorized target of 9.2%, standing at approximately mid 5%, indicating operational inefficiencies.
Rate Case Delay Impact: The Empire Electric Missouri rate case has been delayed, now expected to be resolved in the first half of 2026 instead of late 2025, which could hinder revenue growth.
Customer Service Investigation: An investigation into customer service and billing issues has been initiated by the Missouri Commission, which may affect the company's reputation and operations.
AQN FAQs
How does AQN typically perform around its earnings report dates?
AQN's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +3.21% change leading up to the report and a -0.91% change in the 10 days following the release.
Is Algonquin Power & Utilities Corp (AQN) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
AQN Earning Call Sentiment
Algonquin Power & Utilities Corp. (NYSE:AQN) Q4 2024 Earnings Call Transcript
AQN.N
-4.9%
