Transalta Corp Up 3.08% To $8.03 After Earnings Beat

TransAlta Corp (TAC) reported better than expected earnings this morning for Q3 2023.

Analyst expectations for Transalta Corp earnings per share (EPS) were at $0.33, with the company surpassing those estimates with a reported EPS of $1.05, leading to a positive surprise of $0.72 per share (218%). Transalta Corp's earnings rose 483% year-over-year as the firm reported an EPS of $0.18 in its year-ago quarter. The positive annual growth shows the Utilities company is performing well amid recent economic conditions.

Analyst projections for Transalta Corp revenue came in at a consensus of $535.9 million. Third-Quarter revenues surpassed estimates for $758.1 million by $222.2 million (41%). The company achieved 6% growth year-over-year compared to the firm's revenue of $712.2 million from the year-ago quarter. The higher earnings growth relative to revenue signals Transalta Corp has improved its profit margin.

The stock is up 3.08% to $8.03 after the report.

The firm's lower revenue growth to earnings signals that the firm has been able to reduce costs and improve its profit margin overall.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Transalta Corp has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 9, putting Transalta Corp in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $7.22 on November 1, 2023 and was recently trading at a 52-week high of $10.4 on August 10, 2023.

TransAlta is an independent power producer based in Alberta, Canada. The company owns more than 70 power plants in Canada, the Western United States, and Australia. TransAlta's net generating capacity is approximately two thirds coal or natural gas-fired. The remaining one third consists primarily of hydroelectric plants and wind energy farms. We expect this mix to shift to more renewable energy as the company retires Alberta coal plants to comply with carbon emissions legislation. TransAlta also has an energy trading and marketing business and owns natural gas transmission lines.