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Why Is Avangrid (AGR) Up 1.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Avangrid (AGR - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avangrid due for a pullback? 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.
AVANGRID's Q2 Earnings and Revenues Beat Estimates
AVANGRID, Inc. reported second-quarter 2024 earnings of 49 cents per share, which surpassed the Zacks Consensus Estimate of 27 cents by 81.5%. The bottom line also increased 133.3% from the year-ago quarter’s figure of 21 cents.
Total Revenues
Operating revenues amounted to $1.92 billion, which beat the Zacks Consensus Estimate of $1.72 billion by 11.9%. The top line also increased 21.2% from $1.59 billion reported in the comparable period of 2023.
Highlights of the Release
Operating expenses totaled $1.72 billion, up 17.9% from the year-ago quarter’s recorded number of $1.46 billion. This was due to an 11.4% increase in purchased power, natural gas and fuel used.
The operating income amounted to $201 million, up 59.5% from $126 million reported in the prior-year period.
The adjusted net income was $189 million, up 136.3% from $80 million recorded in the comparable period of 2023.
During the second quarter, AGR executed 578-megawatt (MW) onshore wind and solar power purchase agreements (PPA) and signed PPA for an existing 300 MW wind farm. Additionally, the company started to construct the Camino 57 MW solar farm, which is the first in California. The True North 321 MW solar farm is half completed, and Powell Creek 202 MW has its first set of solar panels installed.
AVANGRID also announced a deal to sell the offshore wind leasing area in Kitty Hawk North and received full Federal permission for the building of the New England Wind offshore wind projects.
Segmental Details
Networks’ adjusted net income was $152 million, up 100% from $76 million reported in the year-ago quarter.
Renewables’ net income was $70 million, up 1.5% from $69 million reported in the year-ago quarter.
Corporate and Others’ net loss was $54 million compared with a reported net loss of $60 million in the year-ago period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -8.33% due to these changes.
VGM Scores
Currently, Avangrid has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 these revisions indicates a downward shift. Notably, Avangrid 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 Avangrid (AGR) Up 1.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Avangrid (AGR - Free Report) . Shares have added about 1.3% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Avangrid due for a pullback? 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.
AVANGRID's Q2 Earnings and Revenues Beat Estimates
AVANGRID, Inc. reported second-quarter 2024 earnings of 49 cents per share, which surpassed the Zacks Consensus Estimate of 27 cents by 81.5%. The bottom line also increased 133.3% from the year-ago quarter’s figure of 21 cents.
Total Revenues
Operating revenues amounted to $1.92 billion, which beat the Zacks Consensus Estimate of $1.72 billion by 11.9%. The top line also increased 21.2% from $1.59 billion reported in the comparable period of 2023.
Highlights of the Release
Operating expenses totaled $1.72 billion, up 17.9% from the year-ago quarter’s recorded number of $1.46 billion. This was due to an 11.4% increase in purchased power, natural gas and fuel used.
The operating income amounted to $201 million, up 59.5% from $126 million reported in the prior-year period.
The adjusted net income was $189 million, up 136.3% from $80 million recorded in the comparable period of 2023.
During the second quarter, AGR executed 578-megawatt (MW) onshore wind and solar power purchase agreements (PPA) and signed PPA for an existing 300 MW wind farm. Additionally, the company started to construct the Camino 57 MW solar farm, which is the first in California. The True North 321 MW solar farm is half completed, and Powell Creek 202 MW has its first set of solar panels installed.
AVANGRID also announced a deal to sell the offshore wind leasing area in Kitty Hawk North and received full Federal permission for the building of the New England Wind offshore wind projects.
Segmental Details
Networks’ adjusted net income was $152 million, up 100% from $76 million reported in the year-ago quarter.
Renewables’ net income was $70 million, up 1.5% from $69 million reported in the year-ago quarter.
Corporate and Others’ net loss was $54 million compared with a reported net loss of $60 million in the year-ago period.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -8.33% due to these changes.
VGM Scores
Currently, Avangrid has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% 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 these revisions indicates a downward shift. Notably, Avangrid has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.