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Pattern Energy (PEGI) Loss Narrower than Expected in Q3

CMS ETR DTE PEGI

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Pattern Energy Group Inc.(PEGI - Free Report) reported third-quarter 2016 loss of 5 cent per share, narrower than both the Zacks Consensus Estimate of a loss of 11 cents and the year-ago quarter loss of 14 cents.

Revenues

In the third quarter of 2016, Pattern Energy's revenues of $91.9 million lagged the Zacks Consensus Estimate of $100 million by 8.1%.

However, revenues were up 2.5% from $89.7 million reported a year ago quarter primarily on the back of higher electricity sales (1.8%) and higher related party revenues (64.8%), partially offset by a 13.4% decline in other revenues.

Quarterly Highlights

Total operating expenses were $14.7 million, up 61.5% year over year, primarily due to higher general and administrative expenses.

Operating income in the reported quarter tanked 84% to $2.1 million from $13.1 million in the prior-year quarter.

Interest expenses were $19.8 million, marginally down from the year-ago figure of $19.9 million.

PATTERN ENERGY Price, Consensus and EPS Surprise

 

Financial Position

In the first nine months of 2016, Pattern Energy's cash and cash equivalents were $65.7 million, compared with $103.2 million in the prior-year period.

In the first nine months of 2016, net cash from operating activities was $105.4 million, compared with $83.3 million in the year-ago period.

Pattern Energy's capital expenditure in the first nine months of 2016 was $31.6 million, down 90% from $315.9 million in the year-ago period.

Guidance Narrowed

Pattern Energy has narrowed its 2016 guidance of cash available for distribution to the range of $130–$140 million from the previously guided $125–$145 million.

Peer Releases

DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%.

Entergy Corporation (ETR - Free Report) reported third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%.

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%.

Zacks Rank

Pattern Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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