PNM Resources, Inc. Holding Co. ( PNM Quick Quote PNM - Free Report) recently reiterated its 2020 earnings outlook within $2.16-$2.26 per share, mainly targeting the midpoint of the guided range. This expectation is backed by higher-than-normal temperatures across New Mexico and Texas, which offset the second- quarter’s decline in demand from the commercial customer group due to lockdown. The Zacks Consensus Estimate for 2020 earnings is currently pegged at $2.16 per share, which has moved 0.5% north in the past 60 days. Impact on Revenue Sources Notably, 39.1% and 36.3% of the PNM Resources’revenues for the year 2019 came from residential and commercial customers, respectively. Particularly, for second-quarter 2020, demand from residential customers increased due to the warmer summer weather and ramped-up work from home directives for controlling the spread of novel coronavirus. Also, PNM Resources’ effective cost- management efforts are likely to have aided its earnings. Moreover, the company is likely to have benefited from lower interest rate. PNM Resources issued $200 million Senior Unsecured Notes in April at a weighted rate of 3.3%, on average. The proceeds from this were used to repay other debt obligations. Although the coronavirus has a positive effect on the company’s residential demand, the same is adversely impacting commercial demand. Comparison Y/Y The second-quarter 2019 earnings accounted for 17.1% of the full year’s earnings while in 2020, the company’s second-quarter bottom line is expected to contribute to 22% of the full-year earnings. This hike can be mainly attributed to the above-mentioned favorable factors. Historically, the second half of the year contributes to a major portion of the company’s earnings. Nearly, 72.7% of the same was generated in the June quarter of last year while in the comparable period of the current year, the contribution is projected to be a little down at nearly 70%. Price Performance Currently, the stock carries a Zacks Rank #2 (Buy). In the past month, shares of the company have slid 0.3% compared with the industry’s decline of 5.5%.
Other Stocks to Consider A few other top-ranked stocks from the same space are Fortis Inc. ( FTS Quick Quote FTS - Free Report) , DTE Energy Company ( DTE Quick Quote DTE - Free Report) and Korea Electric Power Corporation ( KEP Quick Quote KEP - Free Report) , each carrying the same Zacks Rank as PNM Resources at present. You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here The Zacks Consensus Estimate for Fortis’ 2020 earnings has moved 1.04% north over the past 60 days. It has a trailing four-quarter positive earnings surprise of 6.28%, on average. The long-term earnings growth rate for DTE Energy is pegged at 5.53%. The Zacks Consensus Estimate for 2020 earnings has moved 0.31% up over the past 60 days. Korea Electric Power’s long-term earnings growth rate stands at 5%. The Zacks Consensus Estimate for 2020 earnings has moved 27.78% up over the past 60 days. 5 Stocks Set to Double Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth. Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. Today, See These 5 Potential Home Runs >>