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  5. NPI: Hi 5i Team, Pls comment on Northland Power lastest earning and this company going forward. [Northland Power Inc.]
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Q: Hi 5i Team,
Pls comment on Northland Power lastest earning and this company going forward.

For income, between Npi and POW , which one would you prefer.

Pls deduct credits accordingly, and thanks.
Asked by Pui on November 18, 2024
5i Research Answer:

NPI missed EPS estimates of 15c, recording a loss of 7c. Revenue beat estimates of $488.2M coming in at $490.5M declining 4% year-over-year. Adjusted EBITDA was $228M, declining from $267M. Adjusted free cash flow per share was 8c down from 25c in the year prior. NPI cited, "third quarter results were negatively impacted by the Gemini cable outage and lower offshore wind production." NPI is still on track to achieve full-year guidance due to strong performance in the first half of the year. Progress continues to be made towards development projects. The results were weak for NPI, but it appears that these may not be persisten issues. 

For income, we prefer POW due to it being a less risky company while still offers nearly a 5% yield. POW is also cheaper at 8x forward earnings. NPI could have greater growth upside with new projects coming online over the next two years, but it is more expensive at nearly 15x forward earnings and has seen more volatility.