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Algonquin Power & Utilities (AQN) Tops Q3 Earnings Estimates

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Algonquin Power & Utilities Corp. (AQN - Free Report) reported third-quarter 2020 operating earnings of 15 cents per share, which beat the Zacks Consensus Estimate of 14 cents by 7.1%. Operating earnings were also 7.1% higher than the year-ago figure.

Total Revenues

Algonquin Power & Utilities’ total revenues came in at $376.1 million, which lagged the Zacks Consensus Estimate of $390 million by 3.56% but increased 2.87% from $365.6 million in the year-ago quarter.

Highlights of the Release

Total expenses marginally decreased 0.03% year over year to $281.2 million due to a decline in regulatory electric purchase price.

Interest charges for the reported quarter were $45.6 million, down 0.2% from the year-ago period.

In the first nine months of 2020, Electric Distribution Systems, Natural Gas Distribution Systems, and Water and Wastewater Distribution Systems customers increased 1.2%, 10.3% and 1.8%, respectively, from the comparable year-ago period.

Through cost-management initiatives, the company was able to achieve cost savings of $18 million for the first nine months of 2020. It expects these initiatives to further reduce cost between $5 million and $10 million in the fourth quarter of 2020.

Financial Highlights

As of Sep 30, 2020, the company had cash and cash equivalents of $318.2 million, up from $62.5 million on Dec 31, 2019.

Total long-term debt as of Sep 30, 2020 was $3.9 billion, up from $3.7 billion on Dec 31, 2019.

For the first nine months of 2020, cash provided from operating activities was $331.2 million, down 25.4% from $443.8 million in the comparable year-ago period.

Guidance

Algonquin Power & Utilities revised its guidance for 2020 capital expenditure to the range of $1.35-$1.70 billion from $1.30-$1.75 billion.

The company continues to execute the five-year $9.2-billion capital program and is making solid progress on the projects under construction. Out of the planned spending, $6.7 billion will be invested in its Regulated Services Group and nearly $2.5 billion in the Renewable Energy Group.

Zacks Rank

Currently, Algonquin Power & Utilities has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

IDACORP, Inc. (IDA - Free Report) reported third-quarter 2020 earnings of $2.02 per share, which surpassed the Zacks Consensus Estimate of $1.99 by 1.5%.
 
DTE Energy Company (DTE - Free Report) reported third-quarter 2020 operating earnings per share of $2.61, which beat the Zacks Consensus Estimate of $2.06 by 26.7%.

Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%. 

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