Avangrid (AGR) Down 3% Since Last Earnings Report: Can It Rebound?

A month has passed since Avangrid’s (AGR) last earnings report. Shares have lost about 3% in that time, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Avangrid waiting for a breakout? Before we dive into the recent reaction from investors and analysts, let’s take a quick look at the company’s most recent earnings report in order to get a better handle on the important factors influencing the situation.

Best estimates for AVANGRID earnings in the first quarter, sales decline y/y

AVANGRID, Inc. reported first-quarter 2024 earnings of 88 cents per share, surpassing the Zacks Consensus Estimate of 71 cents by 23.9%. The bottom line also increased by 37.5% compared to the previous year of 64 cents.

Total revenues

Operating revenues came in at $2.42 billion, representing a 6.01% difference to the Zacks Consensus Estimate of $2.57 billion. Revenue also declined 2% from the $2.47 billion reported in the comparable 2023 period.

Release highlights

Operating expenses were $2.01 billion, down 8.6% from the prior-year quarter’s $2.2 billion. This was the result of a 25.9% decrease in purchased energy, natural gas and fuel consumed.

Operating income was $407 million, up 53.6% from the $265 million reported in the prior year.

Adjusted net income was $341 million, an increase of 37.5% compared to $248 million reported in the comparable period of 2023.

During the first quarter, the company launched the nation’s first Vineyard Wind 1 project. AGR submitted multiple proposals to the tri-state tender offering blade-ready New England Wind offshore projects. Since the beginning of the year, the company has also signed onshore wind power purchase agreements (PPAs) with a capacity of 251 megawatts (MW) and signed PPAs for an existing wind farm with a capacity of 300 MW.

Segment details

Networks adjusted net income was $268 million, up 37.4% from the $195 million reported in the year-ago quarter.

Renewables sector net income was $95 million, up 93.9% from the $49 million reported in the year-ago quarter.

Corporate and non-corporate net loss was $11 million, compared with reported income of $1 million in the same period a year ago.

Conductivity

AVANGRID maintained its 2024 adjusted net income and earnings per share guidance in the range of $839 million to $897 million and $2.17 million to $2.32, respectively, based on an average share count of $386.7 million. The Zacks Consensus Estimate estimates earnings per share of $2.23, which is lower than the company’s mid-range target.

How have estimates changed since then?

It turns out that the estimate review has been trending downward over the past month.

As a result of these changes, the consensus estimate moved by -9.33%.

VGM results

Right now, Avangrid has a weak Growth Score of D, but its Momentum Score is doing much better at A. However, the stock is rated C on the value side, ranking in the middle 20%. investment strategy.

Overall, the stock has a Total VGM Score of C. If you’re not focused on one strategy, this score should interest you.

Perspectives

Estimates for this company generally show a downward trend, and the scale of this revision indicates a downward shift. Notably, Avangrid carries a Zacks Rank #3 (Hold). We expect a linear rate of return on the stock over the next few months.

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