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Why Is Avangrid (AGR) Down 7.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for Avangrid (AGR - Free Report) . Shares have lost about 7.5% 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 Q2 Earnings Miss Estimates, Sales Decline Y/Y
AVANGRID, Inc. reported second-quarter 2023 earnings of 21 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 58%. The bottom line also declined 54.3% from the year-ago quarter’s recorded figure of 46 cents.
GAAP earnings were 22 cents per share, down 54.2% from 48 cents in the prior-year period.
Total Revenues
Total operating revenues amounted to $1,587 million, which missed the Zacks Consensus Estimate of $1,855 million by 14.4%. The top line also declined 15.6% from $1,794 million reported in the comparable period of 2022.
Highlights of the Release
Operating expenses totaled $1,461 million, down 7.1% from the year-ago quarter’s recorded number of $1,573 million. This was due to 12.5% lower purchase power costs and a 8.5% decline in operations and maintenance expenses.
Operating income was $126 million, down 43% from $221 million reported in the prior-year period.
Adjusted Net income totaled $80 million, down 55.1% from $178 million recorded in the comparable period of 2022.
The merger agreement with PNM Resources has been further extended to Dec 31, 2023.
Segmental Details
Networks’ adjusted net income amounted to $76 million, down 41% from $129 million reported in the year-ago quarter.
Renewables’ net income totaled $63 million, down 4.5% from $66 million recorded in the prior-year quarter.
Corporate and Others’ net loss was $59 million compared with a loss of $17 million in the year-ago period.
Guidance
AVANGRID reaffirmed its projection for 2023 adjusted net income and earnings per share in the range of $850-$910 million and $2.20-$2.35, respectively, including 386.7 million average shares outstanding. The Zacks Consensus Estimate for earnings is pegged at $2.16 per share, which is lower than the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Avangrid has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Avangrid has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
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Why Is Avangrid (AGR) Down 7.5% Since Last Earnings Report?
It has been about a month since the last earnings report for Avangrid (AGR - Free Report) . Shares have lost about 7.5% 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 Q2 Earnings Miss Estimates, Sales Decline Y/Y
AVANGRID, Inc. reported second-quarter 2023 earnings of 21 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 58%. The bottom line also declined 54.3% from the year-ago quarter’s recorded figure of 46 cents.
GAAP earnings were 22 cents per share, down 54.2% from 48 cents in the prior-year period.
Total Revenues
Total operating revenues amounted to $1,587 million, which missed the Zacks Consensus Estimate of $1,855 million by 14.4%. The top line also declined 15.6% from $1,794 million reported in the comparable period of 2022.
Highlights of the Release
Operating expenses totaled $1,461 million, down 7.1% from the year-ago quarter’s recorded number of $1,573 million. This was due to 12.5% lower purchase power costs and a 8.5% decline in operations and maintenance expenses.
Operating income was $126 million, down 43% from $221 million reported in the prior-year period.
Adjusted Net income totaled $80 million, down 55.1% from $178 million recorded in the comparable period of 2022.
The merger agreement with PNM Resources has been further extended to Dec 31, 2023.
Segmental Details
Networks’ adjusted net income amounted to $76 million, down 41% from $129 million reported in the year-ago quarter.
Renewables’ net income totaled $63 million, down 4.5% from $66 million recorded in the prior-year quarter.
Corporate and Others’ net loss was $59 million compared with a loss of $17 million in the year-ago period.
Guidance
AVANGRID reaffirmed its projection for 2023 adjusted net income and earnings per share in the range of $850-$910 million and $2.20-$2.35, respectively, including 386.7 million average shares outstanding. The Zacks Consensus Estimate for earnings is pegged at $2.16 per share, which is lower than the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates revision.
VGM Scores
At this time, Avangrid has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, 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 D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Avangrid has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.