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Why Is Evergy (EVRG) Up 11.7% Since Last Earnings Report?

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A month has gone by since the last earnings report for Evergy Inc (EVRG - Free Report) . Shares have added about 11.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Evergy due for a pullback? 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 drivers.

Evergy Q1 Earnings Beat Estimates, Revenues Miss

Evergy, Inc. reported first-quarter 2020 operating earnings of 41 cents per share, beating the Zacks Consensus Estimate by a penny. The reported earnings were down 6.8% year over year due to unfavorable weather, which in turn reduced demand and lowered corporate-owned life insurance benefits.

GAAP earnings in the reported quarter were 31 cents compared with 39 cents in the year-ago period.

Total Revenues

Evergy’s total revenues came in at $1,117 million, missing the Zacks Consensus Estimate of $1,191 million by 6.2%. The top line also declined 8.2% from the year-ago-quarter’s $1,217 million.

Highlights of the Release

Total operating expenses were $919.2 million, down 8.8% from the year-ago quarter’s $1,007.3 million owing to lower fuel and purchased power, along with operating and maintenance costs.

Interest expenses in the reported quarter were $96.2 million, up 5.6% from the year-ago level.

In 2019, Evergy repurchased 29 million shares. Since the inception of the repurchase program, the company has bought back 45 million shares under the 60-million share repurchase authorization. However, it did not repurchase any shares during the first quarter.

Financial Update

Cash and cash equivalents as of Mar 31, 2020 were $304.4 million compared with $23.2 million at 2019-end.

Long-term debt as of Mar 31, 2020 was $8,993.5 million compared with $8,746.7 million at 2019-end.

Cash from operating activities in first-quarter 2020 was $320.6 million compared with $362.1 million in the prior-year comparable period.


 

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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