Back to top

Image: Bigstock

Evergy (EVRG) Up 6.3% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

A month has gone by since the last earnings report for Evergy Inc (EVRG - Free Report) . Shares have added about 6.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Evergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Evergy Surpasses Q1 Earnings and Revenue Estimates

Evergy, Inc.  reported first-quarter 2019 operating earnings of 44 cents per share, beating the Zacks Consensus Estimate of 40 cents by 10% and improving from the year-ago figure by 29.4%.

The year-over-year improvement of the bottom line is attributable to favorable weather, and lower operating and maintenance expenses.

Total Revenues

Evergy’s total revenues came in at $1,216.9 million, improving 102.8% year over year. The top line also surpassed the Zacks Consensus Estimate of $1,197 million by 1.7%.

Highlights of the Release

Total operating expenses increased 111.3% year over year to $1,007.3 million due to higher fuel and purchased power, along with operation and maintenance costs.

Interest and related charges in the reported quarter were $91.1 million, up 108% from the year-ago level.

During the quarter, the company repurchased shares worth $578.3 million and paid dividend of $119.8 million.

Financial Update

Cash and cash equivalents as of Mar 31, 2019 were $133.6 million compared with $160.3 million on Dec 31, 2018.

Long-term debt as of Mar 31, 2019 was $7.12 billion compared with $6.64 billion on Dec 31, 2018.

Cash from operating activities in the first quarter of 2019 was $362.1 million, up 39.5% from $259.6 million a year ago.
 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in fresh estimates.

VGM Scores

Currently, Evergy has a nice Growth Score of B, a grade with the same score on the momentum front. 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 B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Evergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Evergy Inc. (EVRG) - free report >>

Published in