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Evergy's (EVRG) Q4 Earnings and Revenues Surpass Estimates

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Evergy, Inc. (EVRG - Free Report) has reported fourth-quarter 2022 operating earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 22 cents by 36.4%. Earnings improved 87.5% year over year.

GAAP earnings for the reported quarter were 3 cents per share compared with 22 cents per share in the year-ago period.

Evergy reported 2022 earnings per share of $3.71, which improved 7.2% year over year from $3.46 reported in 2021. Evergy’s operating earnings per share were better than its guidance of $3.53-$3.63.

Evergy’s year-over-year earnings growth was driven by higher weather-normalized demand, favorable weather and a higher transmission margin, partially offset by higher depreciation and amortization expenses, and higher interest expenses.

Total Revenues

Evergy’s total revenues were $1,279.6 million, reflecting an increase of 14% from the year-ago quarter’s $1,122.1 million. Strong contributions from all customer classes boosted revenues in the reported quarter. Revenues surpassed the Zacks Consensus Estimate of $1,160 million by 10.3%.

Operating revenues of $5,859.1 million for 2022 were up 4.9% from the $5,586.7 million reported in 2021.

Evergy Inc. Price, Consensus and EPS Surprise

 

Evergy Inc. Price, Consensus and EPS Surprise

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

Highlights of the Release

Total operating expenses were $1,179.4 million, up 17.3% from the year-ago quarter’s $980.9 million, owing to an increase in fuel and purchased power expenses, and SPP network transmission costs.

Interest expenses for the reported quarter were $110.6 million, up 21.3% from the year-ago level.

In the fourth quarter, total electric sales volumes increased 6.9% year over year due to an increase in demand from all customer groups except industrial revenues.

Financial Update

Cash and cash equivalents as of Dec 31, 2022, were $25.2 million compared with $26.2 million as of Dec 31, 2021.

Long-term debt as of Dec 31, 2022, was $9,905.7 million compared with $9,297.9 million as of Dec 31, 2021.

Cash provided (used) by operating activities for 2022 was $1,801.9 million compared with $1,351.7 million in 2021.

Guidance

Evergy has provided its 2023 operating earnings per share guidance of $3.55-$3.75 and adjusted its EPS annual growth target to 6-8% from 2021 through 2025. The mid-point of the guidance is in line with the Zacks Consensus Estimate, which is pegged at $3.65 per share.

The company has provided its five-year (2023-2027) capital investment target of $11.6 billion. The expenditure will be directed toward utility projects aimed at modernizing the grid, focusing on clean energy sources and increasing efficiency as well as reliability of operations.

Zacks Rank

Currently, Evergy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2022 adjusted earnings of 51 cents per share, beating the Zacks Consensus Estimate of 50 cents by 2%.

The Zacks Consensus Estimate for NEE’s 2023 earnings per share is $3.12, implying year-over-year growth of 7.6%.

Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2022 operating earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.03 per share by 2.9%.

The Zacks Consensus Estimate for Dominion’s 2023 earnings per share is $4.02, suggesting a year-over-year decline of 2.2%.

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2022 operating earnings of 69 cents per share, in line with the Zacks Consensus Estimate.

The Zacks Consensus Estimate for XEL’s 2023 earnings per share is $3.37, suggesting year-over-year growth of 6.31%.

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