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Evergy's (EVRG) Q3 Earnings & Revenues Surpass Estimates

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Evergy, Inc. (EVRG - Free Report) reported third-quarter 2023 operating earnings of $1.88 per share, which surpassed the Zacks Consensus Estimate of $1.77 by 6.2%. Earnings decreased 6% year over year.

Evergy’s year-over-year earnings growth was driven by lower operations and maintenance (O&M) expense, higher corporate-owned life insurance (COLI) proceeds, offset by unfavorable weather, lower weather-normalized demand, higher depreciation and amortization expense, and higher interest expense.

GAAP earnings in the reported quarter were $1.53 per share compared with $1.86 in the year-ago period.

Total Revenues

Evergy’s total revenues were $1,669.3 million, which surpassed the Zacks Consensus Estimate of $1,631 million by 2.3%. Total revenues were $1,909.1 million in the year-ago quarter.

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 $1,183.4 million, down 11.1% from the year-ago quarter’s $1,330.7 million, owing to a decrease in fuel and purchased power expenses and SPP network transmission costs.

Interest expenses in the reported quarter were $136.8 million, up 33.7% from the year-ago level.

Financial Update

Cash and cash equivalents as of Sep 30, 2023, were $41 million compared with $25.2 million as of Dec 31, 2022.

Long-term debt as of Sep 30, 2023, was $9,297.6 million compared with $9,905.7 million as of Dec 31, 2022.

Cash provided by operating activities in the first nine months of 2023 was $1,551.7 million compared with $1,477.7 million in the corresponding period of 2022.

Dividend

Evergy increased its fourth-quarter dividend to 64.25 cents per share, resulting in an annualized payout of $2.57. This reflects 4.9% annual growth.

Guidance

Evergy revised its 2023 operating earnings per share guidance to $3.55-$3.65 from $3.55-$3.75. The company adjusted its EPS annual growth target at 4-6% from 2023 through 2026. The mid-point of the guidance is higher than the Zacks Consensus Estimate, which is pegged at $3.58 per share.

Zacks Rank

Currently, Evergy has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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