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Evergy (EVRG) to Report Q2 Earnings: What's in the Cards?

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Evergy, Inc. (EVRG - Free Report) is set to release second-quarter 2020 results on Aug 5, before the market opens. In the last reported quarter, the company delivered an earnings surprise of 2.5%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Evergy’s cost-management initiatives, merger savings and lower average outstanding shares are likely to have positively impacted second-quarter earnings.

Commercial and Industrial (C&I) customers accounted for 47% of its 2019 revenues. Lockdown measures for curbing the novel coronavirus spread reduced C&I activities in the second quarter, in turn lowering demand from the C&I group.

Evergy generated 37% of revenues from residential customers in 2019. Demand from the residential group is expected to have been solid in the second quarter as well. In addition, extended stay-at-home orders are likely to have increased residential load in the second quarter and offset the above negative to some extent.

Expectation

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 70 cents, indicating growth of 20.7% from the year-ago reported figure.

What Our Quantitative Model Indicates

Our proven model does not conclusively predict an earnings beat for Evergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Evergy Inc. Price and EPS Surprise

Evergy Inc. Price and EPS Surprise

Evergy Inc. price-eps-surprise | Evergy Inc. Quote

Earnings ESP: Its Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Evergy currently holds a Zacks Rank #2.

Stocks to Consider

Here are some players from the same sector that are worth considering, as these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Noble Energy (NBL - Free Report) is set to release second-quarter results on Aug 3. It has an Earnings ESP of +9.62% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Williams (WMB - Free Report) is set to release second-quarter results on Aug 3. It has an Earnings ESP of +5.43% and a Zacks Rank of 3.

Marathon Oil Corporation (MRO - Free Report) is set to release second-quarter results on Aug 5. It has an Earnings ESP of +1.05% and a Zacks Rank of 3.

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