Q: Wow, what a big bounce on capital Corp after their qtrly release! But, why? I read it and unless I misread, financial metrics were down over prior compare..other than a big growth in actual power generation. But earnings, revenue, all down, affo a bit up (still down over 9 months)..... What has got everyone so excited?
5i Research Answer:
While many metrics fell year over year, most were substantially higher than estimates. EBITDA was $401M, vs $376M expected. Revenue was much higher than estimates. Adjusted EPS of $1.32 beat estimates by 39% ($0.95 expected). Operationally, things are very good, and CPX achieved a quarterly power production record. With a 4.8% dividend and at 13X earnings, investors decided the stock was too cheap after the big beat on adjusted earnings. It is up 43.5% YTD now.