NorthWestern Energy Q3 adjusted EPS miss on Colstrip acquisitions costs
Overview
U.S. regulated utility's Q3 revenue rose and beat analyst expectations
Adjusted EPS for Q3 declined and missed analyst expectations
Company cites higher costs from Colstrip acquisitions, depreciation, and interest expense
Outlook
NorthWestern affirms 2026 non-GAAP EPS guidance of $3.68-$3.83 per diluted share
Company maintains long-term EPS growth target of 4%-6% from 2024 base year
NorthWestern affirms $3.2 bln capital investment plan for 2026-2030 period
Result Drivers
COLSTRIP ACQUISITION COSTS - Co said higher operating losses from additional ownership in Colstrip Units 3 and 4 weighed on results
HIGHER OPERATING EXPENSES - Increased electric generation maintenance, depreciation, and property taxes contributed to lower earnings
LOWER MERGER-RELATED COSTS - Reduced merger-related expenses partly offset higher costs
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $423.80 mln | $412.47 mln (3 Analysts) |
Q3 Adjusted EPS | Miss | $0.58 | $0.73 (8 Analysts) |
Q3 EPS | $0.50 | ||
Q3 Net Income | $30.70 mln | ||
Q3 Operating Expenses | $349.10 mln | ||
Q3 Operating Income | $74.60 mln | ||
Q3 Pretax Profit | $35.40 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy"
Wall Street's median 12-month price target for NorthWestern Energy Group, Inc. is $78.50, about 4.3% below its November 4 closing price of $82.00
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago
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(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.)