The AGL Energy Limited (ASX: AGL) share price has truly failed to deliver shareholder value, sliding more than 70% since its $27 peak in 2017.
But for investors looking at earnings season for signs of reassurance, AGL has more often than not left its investors with an even bigger hole in their pockets.
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AGL share price crashes on FY20 results
The AGL share price fell 9.38% to $15.36 following the release of its full-year FY20 results.
The electricity business reported an underlying profit after tax of $816 million, or a 22% decline on the prior corresponding period.
Despite the alarming decline, this result was within the company's guidance range.
However, its forward-looking guidance for FY21 was far more alarming.
AGL flagged its expected profit after tax to be in the range of $560 million to $660 million in FY21.
What happened next?
By 21 December 2020, AGL would issue another guidance downgrade, citing underlying profit after tax for FY21 to be between $500 million and $580 million.
The profit downgrade would see the AGL share price slide another 5.14% to $12.54.
By the time AGL's half-year results were due, investors were well aware of what to expect.
Underlying net profit after tax (NPAT) would sink to $317 million, or a 27% decline on the prior corresponding period. This was driven by lower revenues due to weak wholesale prices for electricity and the additional impact of higher depreciation expenses.
The AGL share price managed to tip 1.25% higher to $11.30 on the day the half-year results.
But just two weeks later, AGL shares would tank another 14% to $9.68.
Where do brokers stand?
The Motley Fool's latest broker coverage of AGL quoted a neutral rating and $8.40 target price from Goldman Sachs.
The broker flagged that "…while macro tailwinds post-COVID support the fundamental recovery for the business, near-term shareholder returns have been reduced with the removal of the special dividend and introduction of an underwritten DRP."
Meanwhile, Credit Suisse gave AGL a sell rating and a $6.70 target price.
