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AMPS NYSE· Altus Power Inc.
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AMPS NYSE· Altus Power Inc.
Earnings report Q3 2023

AMPS Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, AMPS reported a significant increase in operating revenues, net. Power sales under Power Purchase Agreements (PPAs) saw a substantial growth of $10.3 million, or 144.1%, reaching $17.4 million. Power sales under Net Metering and Customer Aggregation (NMCAs) also experienced a notable increase of $4.7 million, or 50.7%, reaching $13.8 million. However, power sales on wholesale markets declined by $1.2 million, or 69.2%, amounting to $550,000. Overall, the total revenue from power sales surged by $13.7 million, or 75.8%, reaching $31.8 million. Additionally, solar renewable energy credit revenue decreased by $1.3 million, or 12.1%, to $9.8 million. Rental income declined by $319,000, or 35.2%, to $586,000. However, performance-based incentives showed a significant increase of $1.6 million, or 503.4%, reaching $1.9 million. Revenue recognized on contract liabilities amounted to $977,000.

Strengths

AMPS demonstrated strong revenue growth in the latest quarter, with operating revenues, net increasing by $14.6 million, or 48.1%, compared to the same period last year. This growth can be attributed to the increased number of operating solar energy facilities in the company's portfolio. The substantial increase in power sales under PPAs and NMCAs contributed significantly to the overall revenue growth. Management comments indicate that AMPS continues to expand its solar energy facilities, which bodes well for future revenue growth.

Challenges

AMPS faced some challenges in the latest quarter. Solar renewable energy credit revenue declined by $1.3 million, or 12.1%. Additionally, rental income decreased by $319,000, or 35.2%. These declines may be attributed to various factors, such as changes in market conditions or specific contractual agreements. It will be important for AMPS to address these challenges and find ways to mitigate the impact on its revenue streams.

Noteworthy

The noteworthy aspect of AMPS' performance in the latest quarter is the significant increase in operating revenues, net. The company experienced a growth rate of 48.1%, driven by the expansion of its operating solar energy facilities. This growth indicates the company's ability to capitalize on the increasing demand for renewable energy sources. Additionally, the substantial increase in performance-based incentives highlights the effectiveness of AMPS' incentive programs in driving revenue growth.

Summary

AMPS delivered a strong performance in the latest quarter, with a significant increase in operating revenues, net. The company experienced notable growth in power sales under PPAs and NMCAs, contributing to the overall revenue growth. However, AMPS faced challenges with declining solar renewable energy credit revenue and rental income. Despite these challenges, the company's expansion of operating solar energy facilities and effective incentive programs have positioned it well for future revenue growth. Overall, AMPS' revenue performance in the latest quarter reflects its strong position in the renewable energy sector.

Source documents

Form 10-Q  filed on Nov 13, 2023
12 pages scanned

Reference data

Company financials Q3 revenue 34.2M
Analyst estimates Q3 EPS missed by -151.15%
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