TransAlta Third Quarter 2022 Earnings: Beats Expectations

Simply Wall St

November 10, 2022

TransAlta (TSE:TA) Third Quarter 2022 Results

Key Financial Results

Revenue: CA$929.0m (up 9.3% from 3Q 2021).
Net income: CA$61.0m (up from CA$456.0m loss in 3Q 2021).
Profit margin: 6.6% (up from net loss in 3Q 2021). The move to profitability was primarily driven by lower expenses.
EPS: CA$0.23 (up from CA$1.68 loss in 3Q 2021).

earnings-and-revenue-growth — TSX:TA Earnings and Revenue Growth November 10th 2022

All figures shown in the chart above are for the trailing 12 month (TTM) period

TransAlta Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 79%. Earnings per share (EPS) also surpassed analyst estimates by 4.5%.

Looking ahead, revenue is expected to decline by 6.9% p.a. on average during the next 3 years, while revenues in the Renewable Energy industry in Canada are expected to grow by 2.7%.

Performance of the Canadian Renewable Energy industry.

The company's shares are up 8.1% from a week ago.

Risk Analysis

What about risks? Every company has them, and we've spotted 2 warning signs for TransAlta you should know about.

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Valuation is complex, but we're here to simplify it.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.