Shares of Altus Power (AMPS +0.00%) fell 11.4% on Monday after the clean electric provider announced weaker-than-expected quarterly results.
Still, Altus' results looked good at a glance; third-quarter revenue climbed 48% year over year, to $45.1 million, helping the company swing to generally accepted accounting principles (GAAP) net income of $6.8 million, or $0.03 per share (compared to a loss of $97 million, or $0.63 per share in the same year-ago period). Even so, most analysts were modeling significantly higher earnings of $0.08 per share on revenue of $52.4 million.
NYSE: AMPS
Key Data Points
Pockets of strength despite solar-industry headwinds
Altus Power co-CEO Gregg Felton noted the company delivered record adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth (up 50% year over year to $29.1 million) and operating cash flow (up 82% to $23.6 million), even amid "challenging market conditions that are affecting large portions of our industry."
To be clear, Altus Power's outsized adjusted EBITDA growth was largely the result of adding new solar energy facilities over the past year.
Felton added, "While developers are struggling with limited access to capital, Altus Power has excellent and growing access, providing us with a competitive advantage and allowing us to continue to scale our construction across the country."
What's next for Altus Power stock?
Altus Power also reaffirmed its previous outlook for full-year 2023 adjusted EBITDA in the range of $97 million to $103 million, good for adjusted EBITDA margin in the mid-to-high-50% range and up roughly 70% over 2022.
In the end, however, the market appears less concerned with Altus adjusted EBITDA profitability and remains more focused on its actual top- and bottom-line numbers. With revenue and earnings falling well short of expectations, it's hardly surprising to see the stock dropping in response today.
