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Evergy's (EVRG) Q2 Earnings Miss Estimates, Increase Y/Y

Evergy, Inc. EVRG reported second-quarter 2020 operating earnings of 68 cents per share, which lagged the Zacks Consensus Estimate of 70 cents by 2.9%. However, the reported earnings were up 17.2% year over year due to favorable weather, and lower operation and maintenance expenses due to continued cost management as well as fewer shares outstanding.  

GAAP earnings for the reported quarter were 59 cents compared with 57 cents in the year-ago period.

Total Revenues

Evergy’s total revenues came in at $1,184.7 million, reflecting a decline of 3.02% from the year-ago-quarter’s $1,221.7 million.

Evergy Inc. Price, Consensus and EPS Surprise

Evergy Inc. Price, Consensus and EPS Surprise

Evergy Inc. price-consensus-eps-surprise-chart | Evergy Inc. Quote

Highlights of the Release

Total operating expenses were $913 million, down 3.9% from the year-ago quarter’s $950 million owing to lower fuel and purchased power, along with operating and maintenance costs.

Interest expenses for the reported quarter were $99.5 million, up 4.3% from the year-ago level.

Evergy, through the Sustainability Transformation Plan, is likely to make capital investment of $8.9 billion in the 2020-2024 time period and reduce operation as well as maintenance expenses by $330 million through 2024 by effective cost management. Through this plan, the company is targeting dividend growth to be in line with earnings growth, with a payout range of 60-70%.

Financial Update

Cash and cash equivalents as of Jun 30, 2020 were $176.2 million compared with $23.2 million at 2019-end.

Long-term debt as of Jun 30, 2020 was $9,281.2 million compared with $8,746.7 million at 2019-end.

Cash from operating activities for first-half of 2020 was $522.5 million compared with $633.7 million in the prior-year comparable period.

Guidance

Evergy issued its 2020 operating earnings per share guidance in the range of $2.90-$3.10.

Zacks Rank

Currently, Evergy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Releases

Exelon Corporation’s EXC second-quarter 2020 operating earnings of 55 cents per share surpassed the Zacks Consensus Estimate of 42 cents by 30.9%.

Dominion Energy Inc. D reported second-quarter 2020 operating earnings of 82 cents per share, which beat the Zacks Consensus Estimate by a penny.

NextEra Energy, Inc. NEE reported second-quarter 2020 adjusted earnings of $2.61 per share, which surpassed the Zacks Consensus Estimate of $2.50 by 4.4%.

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