Hannon Armstrong Q1 2020 Earnings Report
Key Takeaways
Hannon Armstrong announced its first quarter 2020 results, reporting $0.35 GAAP EPS and $0.43 Core EPS. The company reaffirmed its 2020 Core EPS guidance and raised $550 million in growth capital year-to-date.
Delivered $0.35 GAAP EPS on a fully diluted basis in Q1 2020, compared to $0.21 in Q1 2019.
Delivered $0.43 Core EPS on a fully diluted basis in Q1 2020, compared to $0.33 Core EPS in Q1 2019.
Reaffirmed guidance for 2020 Core EPS (pre-CECL provision) to exceed previously communicated midpoint of $1.43.
Reported a Portfolio Yield of 7.7% as of the end of Q1 2020, compared to 6.9% at the end of Q1 2019.
Hannon Armstrong
Hannon Armstrong
Forward Guidance
The Company expects that annual core earnings per share in 2020 will exceed the previously communicated guidance midpoint of $1.43 (on a pre- Topic 326 provision basis), reflecting 2018 to 2020 annual Core EPS growth above the midpoint of the 2% to 6% from the 2017 baseline.
Positive Outlook
- Yield on its existing Portfolio
- Yield on incremental Portfolio investments, inclusive of the Company’s existing pipeline
- The volume and profitability of securitization transactions
- Amount, timing, and costs of debt and equity capital to fund new investments
- Changes in costs and expenses reflective of the Company’s forecasted operations
Challenges Ahead
- The ongoing impact of the current outbreak of COVID-19
- The general interest rate and market environment
- Severity and duration of the outbreak domestically and internationally
- Effectiveness of federal, state and local governments’ efforts to contain the spread of COVID-19
- Direct and indirect impact on the U.S. economy and economic activity