Algonquin Power & Utilities Non-GAAP EPS of $0.21 in-line, revenue of $594.8M beats by $73.25M; issues FY22 guidance

• Algonquin Power & Utilities press release (NYSE:AQN): Q4 Non-GAAP EPS of $0.21 in-line.
• Revenue of $594.8M (+20.8% Y/Y) beats by $73.25M.
• Fourth quarter Adjusted EBITDA of $297.6M, an increase of 18%.
• Outlook 2022: The Company estimates that its Adjusted Net Earnings per share will be within a range of $0.72-$0.77 for the 2022 fiscal year vs. consensus of $0.75.
• "Looking forward, we remain confident that the Company's $12.4 billion capital expenditure plan from 2022 through 2026 will continue to drive long term shareholder value."

Comments

[vbbv]

A big holding of mine but an utility valued at 20x+PE is not great...

[newfruit]

@vbbv I don't know if I've ever hear it said but.... it's a growth utility!

[edaskew]

@vbbv It's not, but then look at REIT's and their PE ratios. REIT's own real estate and depreciate it, reducing their taxable income, and so we don't look at earnings, we look at FFO. AQN is in the same boat, in a way. They own a huge amount of real assets (especially including their interest in AY), and depreciation/amortization was 43% of gross income in FY2020. The way I look at it, AQN pays a reliable 4.7% yield that has been growing at 10%. 4.7 + 10 = 14.7% return. I like that and that's the reason I own it.

[ferraridriver]

@edaskew Exactly the reasons I own it. There is share dilution but it is outpaced by earnings to the tune of about 10% annually, which is the amount of their usual dividend raise.

[Founts5]

An interesting company and they had good Quarter. As explained the Press Report they are buying from AEP Kentucky Utilities in eastern KY. However there was NO mention of the ownership issue of the coal generating plant in WV that uses a transmission line to supply the electricity down to KY. I just want to mention this issue which could slow down etc. this deal.