CA - Algonquin Power plunges after cutting full-year earnings guidance

Algonquin Power & Utilities ( NYSE: AQN ) -18.8% to its lowest in four-and-a-half years in Friday's trading after reporting a larger than forecast Q3 adjusted loss and cutting its full-year earnings guidance, citing challenging macroeconomic conditions and construction delays which it expects will continue into next year.

The utility cited the negative effects of increasing interest rates, which cost it $23.3M during the quarter, and the timing of tax incentives relative to some of its renewable energy projects, which cost it $17.1M in the period.

For FY 2022, Algonquin ( AQN ) said it now expects adjusted EPS of $0.66-$0.69 compared with earlier expectations for $0.72-$0.77, citing higher interest rates and inflation, as well as the timing of tax incentives for some renewable energy projects, while also warning of delays in building and completing some of the renewable energy projects.

The guidance prompted National Bank Financial to downgrade shares to Sector Perform from Outperform with a US$13.50 price target, saying dividend increases likely are off the table for now.

Algonquin Power's ( AQN ) stock price return shows a 34% YTD loss as well as a 34% decline during the past year .

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