Algonquin Shares Plunge: Posts Mixed Q2, Sells Renewables Energy Business & Cuts Dividend
Portfolio Pulse from Lekha Gupta
Algonquin Power & Utilities Corp. (NYSE:AQN) shares dropped 10.4% after reporting mixed Q2 FY24 results, announcing the sale of its renewable energy business, and cutting its dividend by 40%. The company missed revenue expectations but exceeded EPS estimates. The sale of the renewable energy business is expected to close by Q1 2025, providing net cash proceeds of $1.6 billion.
August 09, 2024 | 3:16 pm
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Algonquin Power & Utilities Corp. (NYSE:AQN) shares fell 10.4% after mixed Q2 results, a 40% dividend cut, and the announcement of selling its renewable energy business. Revenue missed estimates, but EPS beat expectations. The sale is expected to close by Q1 2025, providing net cash proceeds of $1.6 billion.
The mixed Q2 results, significant dividend cut, and the sale of a major business segment have led to a sharp decline in AQN's stock price. The revenue miss and the dividend cut are likely to weigh heavily on investor sentiment in the short term, despite the positive EPS surprise and the strategic shift towards a pure play regulated utility.
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