Canada's AltaGas misses Q2 revenue expectations

AltaGas

01/08/2025 11:15

Overview

AltaGas Q2 normalized EPS beats estimates at CAD 0.27, per LSEG data

Revenue misses expectations at CAD 2.844 bln, per LSEG data

Midstream EBITDA up 23% yr/yr, driven by strong global exports

Outlook

AltaGas reiterates 2025 normalized EBITDA guidance of $1,775 mln to $1,875 mln

Company expects 2025 normalized EPS between $2.10 and $2.30

AltaGas sees robust demand for open-access export terminals

Result Drivers

MIDSTREAM GROWTH - 23% yr/yr increase in Midstream EBITDA driven by strong global exports and higher gas processing volumes

UTILITIES PERFORMANCE - 10% yr/yr increase in Utilities EBITDA attributed to modernization investments and colder weather in Michigan

REVENUE MISS - Revenue fell short of expectations, despite strong performance in Midstream and Utilities segments

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
C$2.84 bln
C$2.93 bln (1 Analyst)
Q2 Adjusted EPS
Beat
C$0.27
C$0.23 (7 Analysts)
Q2 Adjusted EBITDA
C$342 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the natural gas utilities peer group is "buy"

Wall Street's median 12-month price target for AltaGas Ltd is C$43.00, about 4.9% above its July 31 closing price of C$40.91

The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nCNWRzsbna

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)