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PNM Resources (PNM) Down 1.5% Since Last Earnings Report: Can It Rebound?

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A month has gone by since the last earnings report for PNM Resources (PNM - Free Report) . Shares have lost about 1.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is PNM Resources due for a breakout? 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.

PNM Resources Q3 Earnings Top Estimates, Sales Rise Y/Y

PNM Resources delivered third-quarter 2020 earnings of $1.40 per share, beating the Zacks Consensus Estimate of $1.29 by 8.53%. The bottom line also improved 6.9% from the year-ago quarter’s figure.

On a GAAP basis, the company reported earnings of $1.52 per share compared favorably with $1.28 a year ago.

Total Revenues

Operating revenues of $472.5 million were up 8.9% from $433.6 million in the year-ago quarter.

Highlights of the Release

Total operating expenses in the quarter under review summed $324.7 million, up 10.8% from $293.1 million in the year-ago quarter.

Operating income in the quarter under review was $147.8 million, up 5.2% from $140.5 million a year ago.

PNM Resources and AVANGRID entered into a merger agreement. The merger will create a utility with more than 7.4 gigawatts of renewable energy assets and is expected to close in 2021.

Guidance

The company reaffirmed its recently raised 2020 earnings per share guidance in the range of $2.23-$2.31, the midpoint of which is $2.27, in line with the Zacks Consensus Estimate.

It is also focused on strengthening its infrastructure and plans to invest $4.1 billion in the 2020-2024 time period.



 

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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