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AVANGRID's (AGR) Q1 Earnings Lag Estimates, Revenues Beat

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AVANGRID, Inc. (AGR - Free Report) reported first-quarter 2023 earnings of 64 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 15.8%. The bottom line also declined 44.8% from the year-ago quarter’s figure of $1.16 per share.

GAAP earnings were 63 cents per share, down 45.2% from $1.15 per share recorded in the prior-year period.

Total Revenues

Total operating revenues were $2,466 million, which beat the Zacks Consensus Estimate of $2,260 million by 9.1%. The top line also increased 15.6% from $2,133 million reported in the comparable period of 2022.

 

Avangrid, Inc. Price, Consensus and EPS Surprise Avangrid, Inc. Price, Consensus and EPS Surprise

Avangrid, Inc. price-consensus-eps-surprise-chart | Avangrid, Inc. Quote

Highlights of the Release

Total operating expenses were $2,201 million, up 20.2% from the year-ago quarter’s recorded figure of $1,831 million. This increase was due to higher purchase power costs and a surge in operations and maintenance expenses.

Operating income was $265 million, down 12.3% from $302 million reported in the prior-year quarter.

Net income totaled $215 million, down 49.6% from $427 million recorded in the comparable period of 2022.

The merger agreement with PNM Resources has been further extended to Jul 20, 2023.

Segmental Details

Networks’ adjusted net income was $195 million, down 23.2% from $254 million reported in the year-ago quarter.

Renewables’ net income was $51 million, down 75.8% from $211 million recorded in the prior-year quarter.

Corporate and Others’ net income was $1 million against a loss of $15 million in the year-ago period.

Guidance

AVANGRID reaffirmed the 2023 adjusted net income and EPS guided range at $850-$910 million and $2.20-$2.35, respectively, taking into consideration 386.7 million average shares outstanding. The Zacks Consensus Estimate for earnings is pegged at $2.24 per share, which is lower than the mid-point of 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

FirstEnergy Corporation (FE - Free Report) is slated to report first-quarter results on Apr 27, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at 61 cents per share, implying a year-over-year increase of 1.67%.

FE’s long-term (three to five years) earnings growth is currently pinned at 6.45%. The consensus mark for 2023 earnings per share (EPS) stands at $2.51, indicating a year-over-year improvement of 4.15%.

Exelon Corporation (EXC - Free Report) is slated to report first-quarter results on May 3, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 67 cents per share, implying a year-over-year increase of 4.7%.

EXC’s long-term earnings growth is currently pinned at 6.68%. The consensus estimate for 2023 EPS stands at $2.36, indicating a year-over-year improvement of 3.96%.

Duke Energy (DUK - Free Report) is scheduled to report first-quarter results on May 9, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.31 per share, indicating a year-over-year increase of 0.77%.

DUK’s long-term earnings growth is currently pinned at 6.18%. The consensus mark for 2023 EPS stands at $5.61, implying a year-over-year improvement of 6.45%.

 

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