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Evergy (EVRG) Up 4.6% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Evergy Inc (EVRG - Free Report) . Shares have added about 4.6% 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 catalysts.

Evergy's Q2 Earnings and Revenues Miss Estimates

Evergy, Inc.  reported second-quarter 2019 operating earnings of 58 cents per share, lagging the Zacks Consensus Estimate of 60 cents by 3.3%. The second-quarter earnings were impacted by unfavorable weather conditions in its service territories.

GAAP earnings in the reported quarter were 57 cents compared with 90 cents in the year-ago period.

Total Revenues

Evergy’s total revenues came in at $1,221.7 million, improving 36.8% year over year. However, the top line lagged the Zacks Consensus Estimate of $1,330 million by 8.4%.

Highlights of the Release

Total operating expenses increased 23.9% year over year to $950 million due to higher fuel and purchased power, along with operation and maintenance costs.

Interest and related charges in the reported quarter were $95.4 million, up 63.4% from the year-ago level.

As of Jun 30, 2019, Evergy repurchased 20 million shares worth $1,128.7 million. Since the inception of the repurchase program, the company repurchased 36.3 million shares worth nearly $2.2 billion.

Financial Update

Cash and cash equivalents as of Jun 30, 2019 were $107 million compared with $160.3 million on Dec 31, 2018.

Long-term debt as of Jun 30, 2019 was $7.12 billion compared with $6.64 billion on Dec 31, 2018.

Cash from operating activities in the first half of 2019 was $633.7 million compared with $397.2 million in the comparable year-ago period.

Guidance

Evergy reaffirmed its guidance for 2019 adjusted earnings in the range of $2.80-$3.00 per share.
 

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended upward during the past month.

VGM Scores

At this time, Evergy has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. However, 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 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.


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