What Happened to the AGL Energy Share Price?
The share price of power generator and retailer AGL Energy Ltd [ASX:AGL] retreated by nearly 1% today, lagging behind a mixed Aussie stock market. Earlier in the session, the stock traded down by as much as 2.8%. AGL shares have been stuck in a distinct downtrend for much of the past six months.
Why Did This Happen to the AGL Share Price?
This morning, AGL disappointed the market with its profit forecast. Excluding one-off items, the company expects to make between $575 million and $635 million in the year ending 30 June 2015.
That’s less than what most analysts expected.
What’s more, the company is taking a $156 million hit related to its $1.5 billion takeover of NSW power producer Macquarie Generation.
To chalk 10% of the value of an acquisition up as ‘costs’ has raised some eyebrows. The size of this impact took investors by surprise, which has put the stock price under pressure today.
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What Now for AGL Energy Ltd?
It’s worth remembering that AGL Energy is a solid dividend-paying stock. AGL paid out 63 cents per share last financial year.
The prospect of a dividend yield north of 4.5% should entice income-focused buyers to support AGL Energy.
Cheers, Tim Dohrmann+
Small-Cap Analyst, Australian Small-Cap Investigator
Join Money Morning on Google+
The post Why the AGL Energy Share Price Fell Today appeared first on Stock Market News, Finance and Investments | Money Morning Australia.
