AVANGRID's (AGR) Q3 Earnings Lag Estimates, Sales Rise Y/Y
AVANGRID, Inc. AGR reported third-quarter 2023 earnings of 27 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 35.7%. The bottom line also declined 12.9% from the year-ago quarter’s 31 cents.
GAAP earnings were 15 cents per share, down 44.4% from 27 cents in the prior-year period.
Total Revenues
Total operating revenues amounted to $1,974 million, which missed the Zacks Consensus Estimate of $1,979 million by 0.3%. The top line increased 7.4% from $1,838 million reported in the comparable period of 2022.
Avangrid, Inc. Price, Consensus and EPS Surprise
Avangrid, Inc. price-consensus-eps-surprise-chart | Avangrid, Inc. Quote
Highlights of the Release
Operating expenses totaled $1,885 million, up 9.2% from the year-ago quarter’s recorded number of $1,726 million. This was due to a 21.9% increase in operation and maintenance expenses and an 8.6% rise in depreciation and amortization expenses.
Operating income was $89 million, down 20.5% from $112 million reported in the prior-year period.
Adjusted Net income totaled $105 million, down 13.9% from $122 million recorded in the comparable period of 2022.
AVANGRID successfully completed the installation of two turbines at its Vineyard Wind 1 offshore wind farm.
Segmental Details
Networks’ adjusted net income amounted to $92 million, up 3.4% from $89 million reported in the year-ago quarter.
Renewables’ net income totaled $55 million, up 22.2% from $45 million recorded in the prior-year quarter. The increase was primarily due to improved production and production tax credits.
Corporate and Others’ net loss was $42 million compared with a loss of $13 million in the year-ago period.
Guidance
AVANGRID continued its projection for 2023 adjusted net income and earnings per share in the range of $850-$910 million and $2.20-$2.35, respectively, including 386.7 million average shares outstanding. The Zacks Consensus Estimate for earnings is pegged at $2.14 per share, lower than the company’s guided range.
Zacks Rank
AVANGRID currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Entergy Corp. ETR is slated to report third-quarter results on Nov 1, before market open. The Zacks Consensus Estimate for earnings is pegged at $2.99 per share, implying a year-over-year improvement of 5.3%.
ETR’s long-term (three to five years) earnings growth rate is 5.8%. It delivered an average earnings surprise of 3.41% in the last four quarters.
Atmos Energy Corp. ATO is slated to report fiscal fourth-quarter 2023 results on Nov 8, after market close. The Zacks Consensus Estimate for earnings is pegged at 71 cents per share, implying a year-over-year increase of 39.2%.
ATO’s long-term earnings growth rate is 7.3%. It delivered an average earnings surprise of 2.40% in the last four quarters.
American Electric Power Co. Inc. AEP is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.77 per share, implying a year-over-year improvement of 9.3%.
AEP’s long-term earnings growth rate is 4.8%. It delivered an average earnings surprise of 1.43% in the last four quarters.
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