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 +3.11% change in stock price 10 days leading up to the earnings, and a -1.85% change 10 days following the report. On the earnings day itself, the stock moves by -3.30%. This data can give you a slight idea of what to expect for the next quarter's release.
AQN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
573.20M
-8.25%
--
Gross Margin
61.55%
1.60%
--
Operating Margin
20.48%
-1.96%
--
Net Margin
5.83%
119.45%
--
EPS
-1.71
-557.69%
--
No Data Available
AQN Earnings Analysis
Algonquin Power & Utilities Corp Corporation (AQN.N) Earnings Conference Call
Positive
Rate Case Revenue Boost: 1. Revenue Increase from Rate Cases: The company received a final order for its New York Water utility authorizing a $38.6 million increase in revenues over a three-year rate plan, effective September 1.
Adjusted EBITDA Increase: 2. Positive Adjusted EBITDA Growth: The regulated business saw a year-over-year adjusted EBITDA growth of 3% in Q3, driven by the implementation of new rates across several electric, gas, and water facilities.
Rate Case Filings Overview: 3. Significant Rate Case Filings: Algonquin has filed for revenue increases totaling approximately $92 million for Empire Electric in Missouri and $39.8 million for CalPeco in California, contributing to over $700 million in potential net increases in authorized rate base.
Financial Flexibility Enhancement: 4. Strong Financial Position Post-Transactions: The company expects to receive approximately $1.7 billion to $1.8 billion in net proceeds from the sale of its renewables business, enhancing its financial flexibility.
Strategic Transition Milestones: 5. Strategic Transition Progress: The company is on track to achieve key milestones in its transition to a pure-play regulated utility, with a focus on optimizing its capital structure and improving operational efficiencies.
Negative
Earnings Decline Report: 1. Declining Adjusted Net Earnings: The company reported a 5% decrease in adjusted net earnings year-over-year, totaling $187 million for continuing operations.
Earnings Per Share Decline: 2. Significant Drop in Earnings Per Share: Adjusted net earnings per share fell by 20% compared to the previous year, primarily due to higher operating expenses and the issuance of 76.9 million common shares.
Rising Debt Concerns: 3. Increased Debt Levels: Total debt rose to $8.7 billion in Q3, up from the previous quarter, partly due to the buyout of a construction loan, indicating a worsening leverage position.
Regulatory Timing Challenges: 4. Regulatory Lag Impact: The company anticipates that the timing of rate cases will negatively affect short-term results, with significant financial benefits from rate case resolutions not expected until 2026.
Operating Expenses Challenge: 5. Higher Operating Expenses: Despite a 1% increase in revenue, the company faced higher operating expenses that offset revenue growth, indicating challenges in cost management.
AQN FAQs
How does AQN typically perform around its earnings report dates?
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AQN Earning Call Sentiment
Algonquin Power & Utilities Corp. (AQN) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
AQN.N
-0.65%Positive
The earnings call presents a mixed picture. Financial performance shows slight revenue growth but declining net earnings and EPS, offset by positive shareholder return plans. Q&A reveals management's evasive responses on key issues, raising uncertainties. While new rates and renewable proceeds provide positives, increased debt and weak guidance on regulatory impacts offset these. Market reaction is likely neutral, with a potential slight negative bias due to uncertainties and management's lack of clarity. The market cap suggests modest volatility.
