A month has gone by since the last earnings report for Avangrid (
AGR Quick Quote AGR - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Avangrid due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
AVANGRID's Q1 Earnings Lag Estimates, Revenues Beat AVANGRID, Inc. reported first-quarter 2023 earnings of 64 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 15.8%. The bottom line also declined 44.8% from the year-ago quarter’s figure of $1.16 per share. GAAP earnings were 63 cents per share, down 45.2% from $1.15 per share recorded in the prior-year period. Total Revenues
Total operating revenues were $2,466 million, which beat the Zacks Consensus Estimate of $2,260 million by 9.1%. The top line also increased 15.6% from $2,133 million reported in the comparable period of 2022.
Highlights of the Release
Total operating expenses were $2,201 million, up 20.2% from the year-ago quarter’s recorded figure of $1,831 million. This increase was due to higher purchase power costs and a surge in operations and maintenance expenses.
Operating income was $265 million, down 12.3% from $302 million reported in the prior-year quarter. Net income totaled $215 million, down 49.6% from $427 million recorded in the comparable period of 2022. The merger agreement with PNM Resources has been further extended to Jul 20, 2023. Segmental Details Networks’ adjusted net income was $195 million, down 23.2% from $254 million reported in the year-ago quarter. Renewables’ net income was $51 million, down 75.8% from $211 million recorded in the prior-year quarter. Corporate and Others’ net income was $1 million against a loss of $15 million in the year-ago period. Guidance
AVANGRID reaffirmed the 2023 adjusted net income and EPS guided range at $850-$910 million and $2.20-$2.35, respectively, taking into consideration 386.7 million average shares outstanding. The Zacks Consensus Estimate for earnings is pegged at $2.24 per share, which is lower than the mid-point of the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
The consensus estimate has shifted 5.06% due to these changes.
Currently, Avangrid has a poor Growth Score of F, however its Momentum Score is doing a bit better 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 F. If you aren't focused on one strategy, this score is the one you should be interested in.
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Avangrid has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.