Algonquin Power & Utilities Corp. AQN-T reported a $195.2-million loss in its latest quarter, missing Street estimates, and cut its financial guidance for the year. Shares were down nearly 20 per cent in afternoon TSX trading.
The power utility, which keeps its books in U.S. dollars, says it lost 29 cents per share for the quarter ended Sept. 30 compared with a loss of US$27.9-million or five cents per share in the same quarter last year.
Revenue totalled US$666.7-million, up from US$528.6-million a year earlier.
On an adjusted basis, Algonquin says it earned 11 cents per share in its latest quarter - missing the Street estimate by 6 cents a share - compared with an adjusted profit of 15 cents per share in its third quarter of 2021.
In its outlook, the company says it now expects adjusted net earnings per share for 2022 in a range of 66 cents to 69 cents compared with earlier expectations for between 72 cents and 77 cents.
Algonquin says it updated its guidance due to higher interest rates and inflation, delays in the construction and completion of some of its renewable energy projects, and anticipated delays in connection with certain rate decisions.
Analysts are already reacting to the disappointing results.
iA Capital Markets analyst Naji Baydoun cut his price target to C$16 from $19 while maintaining a “hold” rating.
“We have been forecasting long-term growth below AQN’s stated objectives for some time, and continue to remain on the sidelines as the Company attempts to (1) reposition its portfolio for more consistent per share growth, and (2) regain investor confidence via improved execution and strategic initiatives,” he said in a note to clients.
Elsewhere, National Bank of Canada cut its price target to US$13.50 from US$14.25 and downgraded its rating to “sector perform” from “outperform.”
Further analyst actions could occur on Monday, when their full reviews of the company’s quarterly results become available.
The average target on the Street has come down to C$14.86, from C$15.53 a month ago, according to Refinitiv Eikon data as of midday Friday.
With reports from The Canadian Press
Darcy Keith