Pattern Energy (PEGI) Beats Earnings, Misses On Revenues

Pattern Energy Group Inc. (NASDAQ:PEGI) reported second-quarter 2016 earnings of 1 cent per share, beating the Zacks Consensus Estimate of breakeven earnings. Reported earnings were, however, lower than the prior-year figure of 16 cents.

Revenues

In the second quarter of 2016, Pattern Energy's revenues of $93.4 million lagged the Zacks Consensus Estimate of $112 million by 16.6%.

However, revenues were up 10.3% from $84.7 million reported a year ago quarter primarily on the back of higher electricity sales (10.2%) and higher related party revenue (53%),partly offset by a 20.7% decline in other revenues.

Quarterly Highlights

Total operating expenses were $12.3 million, up 17.1% year over year, primarily due to higher general and administrative expenses.

Operating income in the reported quarter tanked 65.6% to $4.1 million from $11.9 million in the prior-year quarter.

Interest expenses were $21.3 million, up12.7% from the year-ago figure of $18.9 million.

Financial Position

As of Jun 30, 2016, Pattern Energy's cash and cash equivalents were $87.6 million, compared with $94.8 million as of Dec 31, 2015.

In the first six months of 2016, net cash from operating activities was nearly $69 million, compared with $48.6 million in the year-ago period.

Pattern Energy's capital expenditure in the first six months of 2016 was $25.9 million, down 88% from $216.5 million in the year-ago period.

Guidance

Pattern Energy reiterated its annual guidance of cash available for distribution atthe range of $125–$145 million.

Other Releases

NiSource Inc. (NYSE:NI) reported second-quarter 2016 operating earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of 7 cents by 14.3%.

FirstEnergy Corporation (NYSE:FE) announced second-quarter 2016 operating earnings of 56 cents per share, beating the Zacks Consensus Estimate of 53 cents by 5.7%.

NextEra Energy, Inc. (NYSE:NEE) reported second-quarter 2016 adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.

Zacks Rank

Pattern Energy currently holds a Zacks Rank #3 (Hold).