Brookfield Renewable Beats On Revenue, Misses On Earnings; Shares Drop 3%

Shares of Brookfield Renewable Partners (BEP.UN) fell more than 3% on Tuesday morning after the hydroelectric and wind power generation facilities operator posted lower-than-expected revenue in its first quarter. The company reported a loss after reporting a profit for the same period a year ago.

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Brookfield Renewable’s revenue came in at nearly $1.02 billion for the quarter ended March 31, a decrease of 2.9% from $1.05 billion in the prior-year quarter. It beat consensus estimates by $92.07 million.

The company reported a loss of $55 million ($0.24 per share) in 1Q 2021, compared to a profit of $89 million ($0.01 per share) in 1Q 2020. It missed estimates by $0.21.

Meanwhile, FFO was $242 million or $0.38 per unit in the first quarter, increasing 3% year-over-year. On a normalized basis, FFO increased by 21% compared to the same period of the previous year.

Brookfield Renewable’s CEO Connor Teskey said, “We had a strong quarter, as we executed on our key priorities, including investing in growth, delivering on our corporate contracting initiatives, and bolstering our liquidity. The tailwinds for renewables are accelerating as governments and businesses around the world are intensifying their focus on decarbonization. Given our global scale, operational depth, and financial strength, we remain uniquely positioned to participate in the accelerating build-out of renewables that will impact all sectors of the economy.” (See Brookfield Renewable Partners stock analysis on TipRanks.)

Today, R.F. Lafferty analyst Jaime Perez downgraded the stock to Hold from Buy and lowered its price target to $35.00 (C$43.01) for a 6% downside potential, after Brookfield Renewable posted a loss per share of $0.24 that missed the consensus estimate.

Overall, the consensus on the Street is that BEP.UN is a Hold based on 2 Buys and 8 Holds. The average analyst price target of C$55.64 implies a 21% upside potential from current levels.