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Why Is PNM Resources (PNM) Down 18.2% Since Last Earnings Report?

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A month has gone by since the last earnings report for PNM Resources (PNM - Free Report) . Shares have lost about 18.2% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is PNM Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

PNM Resources' Earnings Meet Estimates in Q1, Up Y/Y

PNM Resources reported first-quarter 2020 earnings of 18 cents per share, which were in line with the Zacks Consensus Estimate. The bottom line surged 63.6% from the year-ago quarter’s reported figure of 11 cents.

On GAAP basis, the company incurred a loss of 19 cents per share against earnings of 23 cents in the year-ago quarter.

Total Revenues

The company generated Electric Operating revenues of $333.6 million in the first quarter, down 4.6% from $349.6 million in year-ago quarter.

Highlights of the Release

Total operating expenses in the quarter under review amounted to $285.8 million, down 8.6% from expenses of $312.9 million in the year-ago quarter.

Operating income in the quarter under review was $47.7 million, up 30% from $36.7 million in 2018.

Total weather-normalized retail load inched up 1.1% year over year in March 2020 in the PNM segment. It is within the company's previously-projected range of 0.5-1.5%.

At TNMP, weather-normalized demand-based load increased 3.8% in March 2020 year over year and weather-normalized volumetric load increased 3.7% in March 2020 on a year-over-year basis,

In April, the New Mexico Public Regulation Commission approved its application for abandonment and securitization of the San Juan Generating Station.


The company reaffirmed its 2020 consolidated earnings per share guidance in the range of $2.16-$2.26, whose midpoint of $2.21 is higher the Zacks Consensus Estimate of $2.15.


How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

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