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Evergy (EVRG) to Report Q1 Earnings: What's in the Offing?

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Evergy, Inc. (EVRG - Free Report) is set to release first-quarter 2020 results on May 6, after the market closes. In the last four quarters, the company delivered average positive earnings surprise of 1.8%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Evergy’s cost-management initiatives, merger savings and share repurchases completed during the quarter are likely to have positively impacted first-quarter earnings.

Commercial and industrial customers together accounted for 47% of its revenues in 2019. Hence, the shutdown of commercial and industrial activities for curbing the spread of novel coronavirus may have impacted first-quarter revenues of the company.

Evergy generated 37% of revenues from residential customers in 2019. Similar demand trends from the residential group were witnessed in the first quarter as well. Thus, extended stay-at-home orders are likely to have somewhat offset the above negative.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at 40 cents, indicating a decline of 9.1% from the year-ago reported figure.

What Our Quantitative Model Indicates

Our proven model does not conclusively predict an earnings beat for Evergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Evergy Inc. Price and EPS Surprise

Evergy Inc. Price and EPS Surprise

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

Earnings ESP: Its Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Evergy currently holds a Zacks Rank #3.

Stocks to Consider

Here are some players from the same sector that are worth considering, as these have the right combination of elements to deliver an earnings beat in the upcoming releases.

Sunrun Inc. (RUN - Free Report) is set to release first-quarter results on May 6. It has an Earnings ESP of +64.71% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

SunPower Corporation (SPWR - Free Report) is set to release first-quarter results on May 7. It has an Earnings ESP of +56.10% and a Zacks Rank of 3.

Apache Corporation (APA - Free Report) is set to release first-quarter results on May 7. It has an Earnings ESP of +1.33% and a Zacks Rank of 3.

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Evergy Inc. (EVRG) - free report >>