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PNM Resources (PNM) Q3 Earnings Beat Estimates, Revenues Lag
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PNM Resources (PNM - Free Report) reported third-quarter 2023 earnings of $1.54 cents per share, which surpassed the Zacks Consensus Estimate of $1.30 by 18.5%. The bottom line also increased 5.5% from the year-ago quarter’s figure of $1.46.
Total Revenues
Net sales of $505.9 million missed the Zacks Consensus Estimate of $909 million by 44.3%. The top line also decreased 30.7% from the year-ago quarter’s level of $729.9 million.
PNM Resources, Inc. Price, Consensus and EPS Surprise
PNM reported earnings of $1.19 per share, up 1.7% from that registered in the year-ago quarter. This was due to hotter temperatures, lower costs associated with generation portfolio changes and improved market performance of decommissioning.
TNMP recorded earnings of 46 cents per share, up 27.8% from the prior-year quarter’s figure. This was due to rate recovery through Transmission Cost of Service and Distribution Cost Recovery Factor mechanisms and higher customer usage due (in part) to hotter temperatures.
Corporate and Other incurred a loss of 11 cents per share, wider than the year-ago quarter’s reported loss of 7 cents. This was due to higher interest rates on variable rate debt, net of hedges and increased loss.
Highlights of the Release
Total operating expenses were $419.2 million, down 23.4% from $547.1 million recorded in the year-ago quarter.
Total operating income was $86.7 million, down 52.6% from $182.8 million registered in the comparable period of 2022.
Regarding the merger agreement with AVANGRID, the companies’ appeal of the New Mexico Public Regulation Commission’s December 2021 merger stipulation denial remains pending with the New Mexico Supreme Court following oral arguments held on Sep 15, 2023. There is no statutory deadline for the court to respond to the appeal.
Guidance
As a result of the significant weather impact on third-quarter earnings, PNM Resources increased its ongoing earnings guidance to $2.75-$2.80 per share from the previously projected range of $2.65-$2.75.
NRG Energy, Inc. (NRG - Free Report) is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.79 per share.
NRG’s long-term (three to five years) earnings growth rate is 10.26%. The consensus mark for 2023 EPS is pegged at $5.15, implying year-over-year growth of 96.6%.
Exelon Corporation (EXC - Free Report) is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at 68 cents per share.
EXC’s long-term earnings growth rate is 6.3%. The consensus mark for 2023 EPS is pegged at $2.35, implying year-over-year growth of 3.5%.
Alliant Energy (LNT - Free Report) is scheduled to report third-quarter results on Nov 2, after market close. The Zacks Consensus Estimate for earnings is pinned at 92 cents per share.
LNT’s long-term earnings growth rate is 6.26%. The consensus mark for 2023 EPS is pinned at $2.86, implying a year-over-year improvement of 2.1%.
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PNM Resources (PNM) Q3 Earnings Beat Estimates, Revenues Lag
PNM Resources (PNM - Free Report) reported third-quarter 2023 earnings of $1.54 cents per share, which surpassed the Zacks Consensus Estimate of $1.30 by 18.5%. The bottom line also increased 5.5% from the year-ago quarter’s figure of $1.46.
Total Revenues
Net sales of $505.9 million missed the Zacks Consensus Estimate of $909 million by 44.3%. The top line also decreased 30.7% from the year-ago quarter’s level of $729.9 million.
PNM Resources, Inc. Price, Consensus and EPS Surprise
PNM Resources, Inc. price-consensus-eps-surprise-chart | PNM Resources, Inc. Quote
Segmental Details
PNM reported earnings of $1.19 per share, up 1.7% from that registered in the year-ago quarter. This was due to hotter temperatures, lower costs associated with generation portfolio changes and improved market performance of decommissioning.
TNMP recorded earnings of 46 cents per share, up 27.8% from the prior-year quarter’s figure. This was due to rate recovery through Transmission Cost of Service and Distribution Cost Recovery Factor mechanisms and higher customer usage due (in part) to hotter temperatures.
Corporate and Other incurred a loss of 11 cents per share, wider than the year-ago quarter’s reported loss of 7 cents. This was due to higher interest rates on variable rate debt, net of hedges and increased loss.
Highlights of the Release
Total operating expenses were $419.2 million, down 23.4% from $547.1 million recorded in the year-ago quarter.
Total operating income was $86.7 million, down 52.6% from $182.8 million registered in the comparable period of 2022.
Regarding the merger agreement with AVANGRID, the companies’ appeal of the New Mexico Public Regulation Commission’s December 2021 merger stipulation denial remains pending with the New Mexico Supreme Court following oral arguments held on Sep 15, 2023. There is no statutory deadline for the court to respond to the appeal.
Guidance
As a result of the significant weather impact on third-quarter earnings, PNM Resources increased its ongoing earnings guidance to $2.75-$2.80 per share from the previously projected range of $2.65-$2.75.
Zacks Rank
PNM Resources currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
NRG Energy, Inc. (NRG - Free Report) is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.79 per share.
NRG’s long-term (three to five years) earnings growth rate is 10.26%. The consensus mark for 2023 EPS is pegged at $5.15, implying year-over-year growth of 96.6%.
Exelon Corporation (EXC - Free Report) is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at 68 cents per share.
EXC’s long-term earnings growth rate is 6.3%. The consensus mark for 2023 EPS is pegged at $2.35, implying year-over-year growth of 3.5%.
Alliant Energy (LNT - Free Report) is scheduled to report third-quarter results on Nov 2, after market close. The Zacks Consensus Estimate for earnings is pinned at 92 cents per share.
LNT’s long-term earnings growth rate is 6.26%. The consensus mark for 2023 EPS is pinned at $2.86, implying a year-over-year improvement of 2.1%.