PNM Resources (PNM) Q2 Earnings Beat Estimates, Revenues Lag
PNM Resources PNM reported second-quarter 2023 earnings of 55 cents per share, which surpassed the Zacks Consensus Estimate of 50 cents by 10%. The bottom line, however, declined 3.5% from the year-ago quarter’s figure of 57 cents.
Total Revenues
Net sales of $477.2 million missed the Zacks Consensus Estimate of $582 million by 18%. The top line also decreased 4.5% from the year-ago quarter’s level of $499.7 million.
PNM Resources, Inc. Price, Consensus and EPS Surprise
PNM Resources, Inc. price-consensus-eps-surprise-chart | PNM Resources, Inc. Quote
Segmental Details
PNM reported earnings of 38 cents per share, up 18.8% from that registered in the year-ago quarter. This was due to higher system demand, lower costs associated with generation portfolio changes and reduced gas plant outages.
TNMP recorded earnings of 29 cents per share, down 6.5% from the prior-year quarter’s figure. This was due to rate recovery through Transmission Cost of Service and Distribution Cost Recovery Factor increases and weather-normalized load growth. These were more than offset by depreciation, property tax and interest expense associated with new capital investments, milder temperatures and higher planned O&M expenses.
Corporate and Other incurred a loss of 12 cents per share, wider than the year-ago quarter’s reported loss of 6 cents. This can be attributed to higher interest rates on variable rate debt, net of hedges and increased losses.
Highlights of the Release
Total operating expenses were $384.8 million, down 6.9% from $413.3 million in the year-ago quarter.
Total operating income amounted to $92.3 million, up 6.8% from $86.4 million in the comparable period of 2022.
The merger agreement with AVANGRID has been further extended to Dec 31, 2023.
Guidance
PNM Resources affirmed its 2023 earnings per share (EPS) guidance in the range of $2.65-$2.75. The midpoint of the guided range is $2.70, lower than the Zacks Consensus Estimate of $2.71.
Zacks Rank
PNM Resources currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Release
WEC Energy Group WEC reported second-quarter 2023 earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 85 cents by 8.24%.
WEC’s long-term (three to five years) earnings growth rate is 5.76%. It delivered an average earnings surprise of 6.6% in the last four quarters.
Upcoming Releases
Duke Energy DUK is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
NRG Energy, Inc. NRG is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.07 per share.
NRG’s long-term earnings growth rate is 4.03%. The consensus mark for 2023 EPS is pegged at $4.66, implying year-over-year growth of 77.9%.
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