Algonquin Power & Utilities (NYSE:AQN) Announces Quarterly Earnings Results

Algonquin Power & Utilities (NYSE:AQN) announced its quarterly earnings data on Friday. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.11 by $0.02, Zacks reports. The firm had revenue of $713.69 million during the quarter, compared to the consensus estimate of $713.69 million. Algonquin Power & Utilities had a return on equity of 5.47% and a net margin of 7.32%.During the same quarter in the prior year, the company earned $0.14 EPS.

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

• Company reported multiple regulatory wins, including a New England Gas settlement and a CPUC-approved CalPeco Electric decision that yields $48.6 million in annualized revenues and $60.7 million of retroactive revenue, while Empire Electric has a settlement that could unlock $97 million subject to customer performance metrics.
• First-quarter results slipped year-over-year with GAAP net earnings of $83.1 million (vs. $92.8M) and adjusted net earnings of $99.6 million (vs. $109M), with adjusted EPS of $0.13, driven by non-recurrence of prior-year depreciation/tax benefits, slightly unfavorable weather, and higher wildfire insurance costs.
• Balance sheet and near-term financing are being managed proactively—credit ratings remain in the triple-B/Baa2 range and the company plans to refinance ~$1.15 billion of unsecured notes via a 144A bond, supported by a $1.15 billion delayed-draw credit facility.
• Management is implementing operational improvements — updated procedures, training for damage prevention and leak response, independent QA/QC for line locating, and improved billing accuracy in Missouri — aimed at reducing safety and customer-service risk.
• The company is exploring tax optimization including a potential redomicile and has requested an IRS private letter ruling (expected 6–9 months), but no board or shareholder decisions have been made.

Algonquin Power & Utilities Price Performance

Algonquin Power & Utilities stock opened at $6.08 on Friday. Algonquin Power & Utilities has a 52 week low of $5.32 and a 52 week high of $7.11. The company has a quick ratio of 0.82, a current ratio of 1.00 and a debt-to-equity ratio of 1.27. The stock has a market cap of $4.68 billion, a price-to-earnings ratio of 27.62 and a beta of 0.74. The business has a 50-day simple moving average of $6.37 and a 200 day simple moving average of $6.26.

Algonquin Power & Utilities Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, April 15th. Investors of record on Tuesday, March 31st were paid a dividend of $0.065 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $0.26 annualized dividend and a yield of 4.3%. Algonquin Power & Utilities’s dividend payout ratio (DPR) is currently 113.04%.

Analysts Set New Price Targets

Several research firms recently commented on AQN. Zacks Research downgraded Algonquin Power & Utilities from a “strong-buy” rating to a “hold” rating in a research note on Monday, March 9th. Barclays assumed coverage on Algonquin Power & Utilities in a research report on Wednesday, April 1st. They set an “overweight” rating and a $7.00 price target on the stock. National Bank Financial lowered their price objective on Algonquin Power & Utilities from $7.50 to $7.25 and set an “outperform” rating on the stock in a research note on Monday, March 9th. Raymond James Financial upgraded shares of Algonquin Power & Utilities from a “market perform” rating to an “outperform” rating and increased their target price for the stock from $6.50 to $7.25 in a research report on Monday, March 9th. Finally, Desjardins lowered their price target on shares of Algonquin Power & Utilities from $7.25 to $7.00 and set a “buy” rating on the stock in a research report on Monday, March 9th. Six research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $6.68.

Institutional Investors Weigh In On Algonquin Power & Utilities

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. EdgePoint Investment Group Inc. grew its stake in Algonquin Power & Utilities by 32.6% in the 4th quarter. EdgePoint Investment Group Inc. now owns 81,727,385 shares of the utilities provider’s stock worth $502,563,000 after buying an additional 20,074,709 shares in the last quarter. Bank of Montreal Can lifted its stake in Algonquin Power & Utilities by 23.1% during the fourth quarter. Bank of Montreal Can now owns 20,717,144 shares of the utilities provider’s stock worth $127,395,000 after purchasing an additional 3,886,254 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Algonquin Power & Utilities by 65.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 12,205,756 shares of the utilities provider’s stock worth $62,738,000 after purchasing an additional 4,808,539 shares in the last quarter. Bank of Nova Scotia boosted its holdings in shares of Algonquin Power & Utilities by 1.0% in the 4th quarter. Bank of Nova Scotia now owns 10,276,178 shares of the utilities provider’s stock worth $63,187,000 after purchasing an additional 106,232 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its position in shares of Algonquin Power & Utilities by 3.6% during the 4th quarter. Dimensional Fund Advisors LP now owns 7,572,396 shares of the utilities provider’s stock valued at $46,572,000 after purchasing an additional 266,020 shares during the last quarter. 62.28% of the stock is owned by hedge funds and other institutional investors.

About Algonquin Power & Utilities

Algonquin Power & Utilities Corp (NYSE: AQN) is a diversified generation, transmission and distribution utility company headquartered in Oakville, Ontario. Established in 1988, the firm operates through two primary business segments: Regulated Utilities and Renewable Energy. Its Regulated Utilities segment comprises electric, natural gas and water distribution networks serving residential, commercial and industrial customers across North America, while its Renewable Energy portfolio includes hydroelectric, solar, wind and thermal generation facilities.

The company’s renewable energy assets span multiple jurisdictions in Canada and the United States, reflecting its strategy to expand clean power capacity in regions with supportive regulatory frameworks.