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Why Is Avangrid (AGR) Up 6.7% 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 added about 6.7% in that time frame, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
AVANGRID's Q3 Earnings Lag Estimates, Sales Rise Y/Y
AVANGRID, Inc. reported third-quarter 2023 earnings of 27 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 35.7%. The bottom line also declined 12.9% from the year-ago quarter’s 31 cents.
GAAP earnings were 15 cents per share, down 44.4% from 27 cents in the prior-year period.
Total Revenues
Total operating revenues amounted to $1,974 million, which missed the Zacks Consensus Estimate of $1,979 million by 0.3%. The top line increased 7.4% from $1,838 million reported in the comparable period of 2022.
Highlights of the Release
Operating expenses totaled $1,885 million, up 9.2% from the year-ago quarter’s recorded number of $1,726 million. This was due to a 21.9% increase in operation and maintenance expenses and an 8.6% rise in depreciation and amortization expenses.
Operating income was $89 million, down 20.5% from $112 million reported in the prior-year period.
Adjusted Net income totaled $105 million, down 13.9% from $122 million recorded in the comparable period of 2022.
AVANGRID successfully completed the installation of two turbines at its Vineyard Wind 1 offshore wind farm.
Segmental Details
Networks’ adjusted net income amounted to $92 million, up 3.4% from $89 million reported in the year-ago quarter.
Renewables’ net income totaled $55 million, up 22.2% from $45 million recorded in the prior-year quarter. The increase was primarily due to improved production and production tax credits.
Corporate and Others’ net loss was $42 million compared with a loss of $13 million in the year-ago period.
Guidance
AVANGRID continued 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 $2.14 per share, 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.
The consensus estimate has shifted 5.15% due to these changes.
VGM Scores
At this time, Avangrid has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. 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 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 this revision looks promising. Notably, Avangrid has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Avangrid (AGR) Up 6.7% Since Last Earnings Report?
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, underperforming 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 the most recent earnings report in order to get a better handle on the important drivers.
AVANGRID's Q3 Earnings Lag Estimates, Sales Rise Y/Y
AVANGRID, Inc. reported third-quarter 2023 earnings of 27 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 35.7%. The bottom line also declined 12.9% from the year-ago quarter’s 31 cents.
GAAP earnings were 15 cents per share, down 44.4% from 27 cents in the prior-year period.
Total Revenues
Total operating revenues amounted to $1,974 million, which missed the Zacks Consensus Estimate of $1,979 million by 0.3%. The top line increased 7.4% from $1,838 million reported in the comparable period of 2022.
Highlights of the Release
Operating expenses totaled $1,885 million, up 9.2% from the year-ago quarter’s recorded number of $1,726 million. This was due to a 21.9% increase in operation and maintenance expenses and an 8.6% rise in depreciation and amortization expenses.
Operating income was $89 million, down 20.5% from $112 million reported in the prior-year period.
Adjusted Net income totaled $105 million, down 13.9% from $122 million recorded in the comparable period of 2022.
AVANGRID successfully completed the installation of two turbines at its Vineyard Wind 1 offshore wind farm.
Segmental Details
Networks’ adjusted net income amounted to $92 million, up 3.4% from $89 million reported in the year-ago quarter.
Renewables’ net income totaled $55 million, up 22.2% from $45 million recorded in the prior-year quarter. The increase was primarily due to improved production and production tax credits.
Corporate and Others’ net loss was $42 million compared with a loss of $13 million in the year-ago period.
Guidance
AVANGRID continued 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 $2.14 per share, 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.
The consensus estimate has shifted 5.15% due to these changes.
VGM Scores
At this time, Avangrid has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. 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 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 this revision looks promising. Notably, Avangrid has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.