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TransAlta Swings To Q3 EPS GAAP Loss, But Says "Tracking Toward the Upper End of Its 2024 Guidance"
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TransAlta Swings To Q3 EPS GAAP Loss, But Says "Tracking Toward the Upper End of Its 2024 Guidance"
Nov 5, 2024 7:09 AM

07:58 AM EST, 11/05/2024 (MT Newswires) -- TransAlta ( TAC ) on Tuesday reported a surprise EPS GAAP loss for the third quarter but said it is "tracking toward the upper end of its 2024 guidance" given its "portfolio position and performance" during the first nine months of the year.

It reported net loss per share attributable to common shareholders, basic and diluted of $0.12 versus a positive $1.41 a year earlier and a consensus forecast at Capital IQ of a positive $0.16 for Q3.

The company also reported Q3 2024 adjusted EBITDA of $325 million versus National Bank and the Street at $316 million, while tracking towards the upper end of 2024 financial guidance ranges including adjusted EBITDA of $1.15-$1.3 billion (National Bank's forecast $1.27 billion) and free cash flow of $450-$600 million.

TransAlta ( TAC ) said it is tracking towards the upper end of guidance for 2024 of Adjusted EBITDA of $1,150 million to $1,300 million and FCF of $450 million to $600 million.

On overall impact, National Bank said "recontracting momentum continues".

The bank added: "With 2024 financial performance tracking the upper end of guidance, and momentum surrounding redevelopment and recontracting opportunities at its legacy thermal sites in Alberta, including the potential to enhance grid reliability and/or attracting data center co-location customers, we expect the shares will continue trading stronger despite ongoing uncertainty surrounding the potential closing of the Heartland Generation acquisition." National's current $15 target price is based on a risk-adjusted dividend yield of 2.00%, an EV/Free-EBITDA multiple of 9.0x, and its DCF/sh valuation of $15.50.

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