Evergy's (EVRG) Q3 Earnings Beat Estimates, Revenues Miss

Evergy, Inc. (NYSE:EVRG) reported third-quarter 2018 operating earnings of $1.32 per share, beating the Zacks Consensus Estimate by 4.8%. The bottom line was also up 18.9% year over year.

The year-over-year improvement of the bottom line is attributable to higher contribution from Westar retail sales, and the inclusion of KCP&L and GMO earnings, driven by favorable weather.

Excluding merger-related costs, earnings in the third quarter of 2018 were $1.34 compared with $1.19 in the year-ago quarter.

Total Revenues

Evergy’s total revenues came in at $1,582.5 million, improving 99.2% year over year. However, the figure lagged the Zacks Consensus Estimate of $1,660 million by 4.7%.

Highlights of the Release

Total operating expenses increased 98.2% year over year to $1,049.4 million, due to higher fuel and purchased power, along with operation and maintenance expenses.

Interest and related charges in the reported quarter were $89.1 million, up 105.3% from the year-ago quarter.

During the quarter, the company sold 16,386 megawatt hour (MWh) of electricity compared with 8,940 MWh in the year-ago quarter, driven by higher sales volume to all customer classes.

Post the quarter-end, Evergy’s Board of Directors authorized the repurchase of up to 60 million shares and this authorization does not have an expiry date. However, the company expects to repurchase shares within 2020. The company repurchased shares worth $486.1 million during the third quarter of 2018.

Financial Update

Cash and cash equivalents as of Sep 30, 2018 was $697.7 million compared with $3.4 million on Dec 31, 2017.

Long-term debt as of Sep 30, 2018 was $6.64 billion compared with $3.69 billion at the end of 2017.

Cash from operating activities in the first nine months of 2018 was $1,191.6 million, up 60.4% from $742.7 million in the corresponding period of 2017.

Zacks Rank

Currently, Evergy has a Zacks Rank #1 (Strong Buy).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

Clearway Energy (NYSE:CWEN) delivered third-quarter 2018 earnings of 20 cents per share, missing the Zacks Consensus Estimate of 53 cents by 62.3%.

NextEra Energy (NYSE:NEE) Partners, LP (NYSE:NEP) delivered third-quarter 2018 earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 45 cents by 28.9%.

Covanta Holding Corporation (NYSE:CVA) incurred third-quarter 2018 loss of 4 cents per share, missing the Zacks Consensus Estimate for earnings of 7 cents by 157.1%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>