A month has gone by since the last earnings report for Pattern Energy (PEGI). Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Pattern Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Pattern Energy 2018 Earnings and Revenues Up Y/Y
Pattern Energy Group reported 2018 earnings of $1.45 per share versus a loss of 20 cents in 2017.
Total Revenues
Total 2018 revenues were $483 million compared with $411 million in 2017. The year-over-year increase in revenues was primarily due to higher electric sales.
Fourth-quarter revenues amounted to $113 million, which lagged the Zacks Consensus Estimate of $144 million by 21.5%. However, the figure improved 2.7% from $110 million reported in the prior-year quarter.
Quarterly Highlights
Pattern Energy sold 1,966,677 megawatt hours ("MWh") of electricity on a proportional basis in fourth-quarter 2018 compared with 2,130,343 MWh in the corresponding period last year. The 8% decline was primarily due to a decrease in volume owing to the sale of El Arrayán and a reduction in Pattern Energy's proportional interest at Panhandle 2.
Total operating expenses in the reported quarter increased 40% from the year-ago level to $14 million.
The company incurred interest expenses of $28 million, in line with the year-ago figure.
Financial Highlights
As of Dec 31, 2018, the company had cash and cash equivalents of $101 million compared with $117 million in the comparable year-ago period.
Its long-term debt was $2,004 million as of Dec 31, 2018, up from the Dec 31, 2017 level of $1,879 million.
The company’s cash flow from operating activities in 2018 was $279 million, up from $218 million recorded a year ago.
Guidance
Pattern Energy expects annual cash available for distribution in 2019 within $160-$190 million and 2020 cash available for distribution in the range of $185-$225 million.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. The consensus estimate has shifted -95.59% due to these changes.
VGM Scores
At this time, Pattern Energy has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Pattern Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Pattern Energy Group Inc. (PEGI): Free Stock Analysis Report
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