It has been about a month since the last earnings report for PNM Resources . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PNM Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PNM Resources Q1 Earnings & Revenues Miss Estimates
PNM Resources reported first-quarter 2024 earnings of 41 cents per share, which missed the Zacks Consensus Estimate of 68 cents by 39.7%. The bottom line also declined 25.4% from the prior-year quarter’s level of 55 cents.
Total Revenues
The first-quarter revenues totaled $436.9 million, which missed the Zacks Consensus Estimate of $589 million by 25.8%. The top line also decreased 19.7% from $544.1 million reported in the year-ago quarter.
Segmental Details
PNM reported earnings of 38 cents per share compared with 55 cents in the year-ago quarter. This was due to higher demand charges from battery storage contracts, new depreciation rates implemented as part of new retail rates and depreciation expenses associated with new capital investments.
TNMP recorded earnings of 16 cents per share, up 45.4% from the prior-year quarter’s figure. This improvement was due to rate recovery through Transmission Cost of Service and Distribution Cost Recovery Factor.
Corporate and Other incurred a loss of 13 cents per share, wider than the year-ago quarter’s reported loss of 11 cents. This was due to higher interest rates on variable rate debt increased losses, net of hedges.
Highlights of the Release
Total operating expenses for the first quarter were $356.3 million, down 19.9% from $445 million recorded a year ago.
Total operating income was $80.6 million, down 18.7% from $99.1 million registered in the year-ago quarter.
Guidance
The company continues to project consolidated ongoing earnings in the range of $2.65-$2.75 per share for 2024. The Zacks Consensus Estimate for full-year earnings is pinned at $2.70 per share, which is on par with the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -17.42% due to these changes.
VGM Scores
Currently, PNM Resources has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, PNM Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is PNM Resources (PNM) Down 2.1% Since Last Earnings Report?
It has been about a month since the last earnings report for PNM Resources . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is PNM Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
PNM Resources Q1 Earnings & Revenues Miss Estimates
PNM Resources reported first-quarter 2024 earnings of 41 cents per share, which missed the Zacks Consensus Estimate of 68 cents by 39.7%. The bottom line also declined 25.4% from the prior-year quarter’s level of 55 cents.
Total Revenues
The first-quarter revenues totaled $436.9 million, which missed the Zacks Consensus Estimate of $589 million by 25.8%. The top line also decreased 19.7% from $544.1 million reported in the year-ago quarter.
Segmental Details
PNM reported earnings of 38 cents per share compared with 55 cents in the year-ago quarter. This was due to higher demand charges from battery storage contracts, new depreciation rates implemented as part of new retail rates and depreciation expenses associated with new capital investments.
TNMP recorded earnings of 16 cents per share, up 45.4% from the prior-year quarter’s figure. This improvement was due to rate recovery through Transmission Cost of Service and Distribution Cost Recovery Factor.
Corporate and Other incurred a loss of 13 cents per share, wider than the year-ago quarter’s reported loss of 11 cents. This was due to higher interest rates on variable rate debt increased losses, net of hedges.
Highlights of the Release
Total operating expenses for the first quarter were $356.3 million, down 19.9% from $445 million recorded a year ago.
Total operating income was $80.6 million, down 18.7% from $99.1 million registered in the year-ago quarter.
Guidance
The company continues to project consolidated ongoing earnings in the range of $2.65-$2.75 per share for 2024. The Zacks Consensus Estimate for full-year earnings is pinned at $2.70 per share, which is on par with the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -17.42% due to these changes.
VGM Scores
Currently, PNM Resources has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, PNM Resources has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.