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Algonquin Power & Utilities (AQN) Q2 Earnings Miss Estimates

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Algonquin Power & Utilities Corp. (AQN - Free Report) reported second-quarter 2019 earnings of 11 cents per share, lagging the Zacks Consensus Estimate of 13 cents by 15.4%. The reported earnings were on par with the year-ago figure.

Total Revenues

Algonquin Power & Utilities generated total revenues of $343.6 million in second-quarter 2019, lagging the Zacks Consensus Estimate of $372 million by 7.6%. The top line also declined 6% from $366.1 million in the year-ago quarter.

Highlights of the Release

During the quarter, the company entered into an agreement to acquire Bermuda Electric Light Company, the sole provider of regulated electrical generation, transmission and distribution services to nearly 63,000 residents and businesses in Bermuda. This acquisition is expected to close by the end of this year.

Total expenses in the reported quarter were $281.1 million, down 3.4% from the year-ago level due to lower operating expenses, and decline in the cost of water, gas and electricity purchased.

Operating income in the reported quarter was $62.9 million, down 16.9% year over year.

Algonquin Power & Utilities Corp. Price, Consensus and EPS Surprise

Algonquin Power & Utilities Corp. Price, Consensus and EPS Surprise

Algonquin Power & Utilities Corp. price-consensus-eps-surprise-chart | Algonquin Power & Utilities Corp. Quote

Financial Highlights

The company’s cash and cash equivalents as of Jun 30, 2019 were $65.4 million compared with $46.8 million on Dec 31, 2018.

Its long-term debt as of Jun 30, 2019 was $3,773.5 million compared with $3,323.8 million on Dec 31, 2018.

Cash flow from operating activities at the end of the second quarter was $133.6 million compared with $133.3 million in the comparable year-ago period.

Capital expenditure in the second quarter was $316 million compared with $99.5 million invested in the year-ago period.

Guidance

The company expects 2019 spending within $1.5-$1.7 billion.

Zacks Rank

Algonquin Power & Utilities currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

DTE Energy Company (DTE - Free Report) reported second-quarter 2019 operating earnings per share of 99 cents, which missed the Zacks Consensus Estimate of $1.09 by 9.2%.

Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2019 operating earnings of 46 cents per share, which lagged the Zacks Consensus Estimate of 53 cents by 13.2%.

CMS Energy Corp. (CMS - Free Report) reported second-quarter 2019 adjusted earnings per share of 33 cents, which missed the Zacks Consensus Estimate of 44 cents by 25%.

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