What happened
Shining brightly in investors' eyes, shares of Altus Power (AMPS -2.85%) are soaring today after the solar utility stock reported strong fourth-quarter 2022 earnings and provided 2023 guidance.
As of 10:54 a.m. ET, shares of Altus Power are up 8.2%, having retreated from their earlier climb of 24.3%.
So what
From the top to the bottom of the income statement, investors are finding a lot to celebrate in Altus Power's most recent earnings report. In Q4 2022, Altus reported a 24% year-over-year increase in operating revenue, thanks, in large part, to the company's growing asset base, which expanded from locations in 18 states at the end of 2021 to 24 states at the end of 2022.
More notable than the top line, however, is what the company achieved in growing its bottom line. Altus Power reported Q4 2022 net income of $67.1 million, representing a whopping 363% increase over the $14.5 million that it reported during the same period last year.
It's not only a bright 2022 that investors are celebrating today, though. Altus Power provided guidance that suggests the company is poised to continue growing. While the company reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $58.6 million in 2022, it forecasts adjusted EBITDA of $97 million to $103 million in 2023.
Now what
Enjoying strong growth in 2022 and foreseeing continued growth in 2023, Altus Power is giving investors a lot to be happy about today. But it's not only the financials that warrant recognition. Altus Power also reported that it has more than 1 gigawatt of projects in its development pipeline, suggesting that growth can extend into 2024 and beyond. Of course, investors will want to confirm that once projects transition out of the pipeline the company is replenishing the pipeline with additional opportunities.
