Atlantic Power (AT) reported Q3 earnings today and Mr. Market isn't happy. While the utility's $141.8 million in revenue matched expectations, its adjusted EPS clocked in at -$0.34, a full $0.11 below analyst estimates of an already red -$0.23. Share are down nearly 10% as of this writing.
As Atlantic power reorients itself with new acquisitions, they haven't paid off just yet. While revenue picked up around $35 million from Q3 2012, project expenses increased the same amount. But Atlantic Power does expect its investment in a 298 MW Canadian Hills wind farm and other assets to pay off this year, pushing adjusted EBITDA up $44-$54 million.
Source: Atlantic Power Earnings Presentation
"Our operating and financial results this year have been strong, with contributions from our new projects such as Canadian Hills and Meadow Creek as well as increased contributions from several of our existing projects in the Northeast segment and elsewhere," said President and CEO Barry Welch in a statement today.
Welch noted that while his company's cash position improved this quarter, Atlantic Power will keep on the lookout for "various opportunities" to reduce near-term debt maturities, drop debt levels, and improve overall financial flexibility.
Looking ahead, Atlantic Power narrowed its 2013 guidance from $250 million-$275 million to $260 million-$275 million and reaffirmed cash availability for upcoming dividend distributions. But despite any positive news, investors are less than impressed with Atlantic's latest performance.
