AVANGRID (AGR) Q1 Earnings Top Estimates, Sales Decline Y/Y

Zacks Equity Research

April 24, 2024 at 6:33 a.m.·3 min read

Avangrid, Inc. Price, Consensus and EPS Surprise

AVANGRID, Inc. AGR reported first-quarter 2024 earnings of 88 cents per share, which surpassed the Zacks Consensus Estimate of 71 cents by 23.9%. The bottom line also increased 37.5% from the year-ago quarter’s figure of 64 cents.

Total Revenues

Operating revenues amounted to $2.42 billion, which missed the Zacks Consensus Estimate of $2.57 billion by 6.01%. The top line also decreased 2% from $2.47 billion reported in the comparable period of 2023.

Avangrid, Inc. Price, Consensus and EPS Surprise

Avangrid, Inc. price-consensus-eps-surprise-chart | Avangrid, Inc. Quote

Highlights of the Release

Operating expenses totaled $2.01 billion, down 8.6% from the year-ago quarter’s recorded number of $2.2 billion. This was due to a 25.9% decrease in purchased power, natural gas and fuel used.

Operating income amounted to $407 million, up 53.6% from $265 million reported in the prior-year period.

Adjusted net income was $341 million, up 37.5% from $248 million recorded in the comparable period of 2023.

During the first quarter, the company powered up the first-in-the-nation Vineyard Wind 1 project. AGR submitted multiple proposals offering shovel-ready New England Wind offshore projects into the tri-state solicitation. The company has also executed 251 megawatt (MW) onshore wind power purchase agreements (PPA) year to date and signed PPA for an existing 300 MW wind farm.

Segmental Details

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

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

Corporate and Others’ net loss was $11 million against a reported income of $1 million in the year-ago period.

Guidance

AVANGRID reaffirmed its projection for 2024 adjusted net income and earnings per share in the range of $839-$897 million and $2.17-$2.32, respectively, assuming 386.7 million average shares outstanding. The Zacks Consensus Estimate for earnings is pegged at $2.23 per share, lower than the midpoint of the company’s guided range.

Zacks Rank

AVANGRID currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Pinnacle West Capital PNW is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 5 cents per share.

PNW’s long-term (three-to-five years) earnings growth rate is 7.6%. The Zacks Consensus Estimate for 2024 earnings is pinned at $4.76 per share, implying a year-over-year improvement of 7.9%.

Exelon Corporation EXC is scheduled to report first-quarter results on May 2, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 71 cents per share.

EXC’s long-term earnings growth rate is 5.7%. The Zacks Consensus Estimate for 2024 earnings is pinned at $2.41 per share, implying a year-over-year improvement of 1.3%.

NRG Energy, Inc. NRG is scheduled to report fourth-quarter results on May 7, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 51 cents per share.

The Zacks Consensus Estimate for 2024 earnings is pinned at $5.36 per share. The company delivered an average earnings surprise of 6.4% in the last four quarters.

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