Back to top

Image: Bigstock

Avangrid (AGR) Up 6.7% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for Avangrid (AGR - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Avangrid 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.

AVANGRID's Q1 Earnings & Revenues Surpass Estimates

AVANGRID, Inc. reported first-quarter 2022 earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.07 by 8.4%. Earnings per share (EPS) were up 1.8% from the prior-year figure of $1.14.

GAAP earnings for the first quarter were $1.15 per share, up 22.2% from the prior-year quarter’s figure of $1.08.

Total Revenues

Total operating revenues for the first quarter were $2,133 million, surpassing the Zacks Consensus Estimate of $2,042 million by 4.5%. Revenues also increased by 8.5% from $1,966 million in the comparable period of 2021.

Highlights of the Release

Total operating expenses for the first quarter summed at $1,831 million, up 17.4% from the year-ago quarter’s $1,560 million, due to the higher purchased power cost and an increase in operating expenses.

Operating income was $302 million, down 25.6% from $406 million in the first quarter of 2021.

In January 2022, AVANGRID Renewables completed the restructuring partnership agreement for New England offshore wind lease areas, which generated an after-tax gain of nearly $181 million.

Guidance

AVANGRID affirmed the 2022 adjusted net income and EPS guidance in the range of $850-$920 million and in the band of $2.20-$2.38, respectively, taking into consideration 387 million average shares outstanding. The Zacks Consensus Estimate for earnings of $2.15 per share is lower than $2.29, the midpoint of the guided range.

 

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates revision.

VGM Scores

Currently, Avangrid has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. 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 C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Avangrid 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:


Avangrid, Inc. (AGR) - free report >>

Published in