The AGL Energy Limited (ASX: AGL) share price was a poor performer in February.
Over the period, the energy company's shares sank almost 10%.
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What happened to the AGL share price?
Investors were quick to hit the sell button last month after AGL released its half-year results.
For the six months ended 31 December, AGL reported underlying net profit after tax of $87 million, which was a 55% decline on the prior corresponding period.
On a statutory basis, things were even worse. AGL reported a statutory loss after tax of $1.1 billion. This figure includes $706 million of impairment charges from the company's accelerated decarbonisation plans.
This poor half unsurprisingly led to AGL slashing its dividend by half to just 8 cents per share.
What's next?
One leading broker isn't confident that the AGL share price will rebound in March.
According to a note out of Morgans, its analysts believe investors should wait for a better entry point. In response to its results, the broker said:
Underlying net profit was down 55% on pcp, 60% on our forecast and 45% on Visible Alpha consensus. The key driver was a net $123m impact on the wholesale trading business from the tight winter conditions earlier in the half. This also drove a big miss on DPS with an interim dividend of only 8cps.
We anticipate increasing dividends as earnings begin to recover in the next 12 months however we think the market will want to see clear evidence of this before it regains confidence in the company and the sector.
Morgans has a hold rating and $6.89 price target on its shares. This compares to the latest AGL share price of $6.85.
