Evergy (EVRG) Set to Release Q4 Earnings Amid Positive Analyst Sentiment

Company Overview and Upcoming Earnings Announcement

Evergy, Inc. (EVRG) is a leading electric utility holding company located in Kansas City, Missouri. The company was established through the merger of Kansas City Power & Light (KCP&L) and Westar Energy in 2018. Evergy specializes in providing reliable, affordable, and sustainable energy solutions across a variety of generation sources, including coal, natural gas, wind, and solar. The company currently holds a market capitalization of $14.6 billion.

Analysts Anticipate Strong Earnings Growth

The utility is expected to release its fiscal fourth-quarter earnings for 2024 on Thursday, March 6, before the market opens. Analysts predict a profit of $0.37 per share on a diluted basis, which marks a 37% increase from $0.27 per share in the same quarter last year. However, it’s worth noting that Evergy has missed consensus estimates in three of its last four quarters but managed to surpass expectations once.

Future Earnings Projections

For the fiscal year 2024, analysts forecast Evergy’s earnings per share (EPS) will be $3.84, representing an 8.5% increase from $3.54 in fiscal 2023. Moreover, they expect EPS to grow by 5% year over year, reaching $4.03 in fiscal 2025.

Stock Performance Comparison

Over the past year, EVRG shares have shown a solid return of 29.1%, outperforming the S&P 500’s ($SPX) gain of 22.9% and the Utilities Select Sector SPDR Fund’s (XLU) 26.9% return during the same period.

Factors Supporting Growth

Evergy’s strong stock performance can be attributed to consistent electricity demand within its service regions, alongside favorable regulatory frameworks that promote steady revenue growth. The company’s investments in renewable energy projects, particularly wind and solar, position it well for the increasing demand for clean energy. Additionally, capital investments in infrastructure, including natural gas plants, are expected to support its long-term growth strategy. Evergy’s routine dividend increases also attract income-focused investors, contributing to its overall market resilience.

Recent Performance Highlights

Following an impressive Q3 earnings report on Nov. 7, Evergy’s shares gained 1.8% in the subsequent trading session. The company reported a year-over-year revenue increase of 8.4%, totaling $1.8 billion. Its earnings of $2.02 per share represented a 7.4% growth compared to the previous year, exceeding the consensus estimate of $1.95 per share. Evergy has also reaffirmed its non-GAAP EPS guidance for 2024, which is projected between $3.73 and $3.93, while setting adjusted EPS forecasts for fiscal 2025 in the range of $3.92 to $4.12.

Analysts Maintain Positive Outlook

Analysts have a cautiously optimistic view on EVRG stock, reflected in an overall “Moderate Buy” rating. Among 13 analysts covering the stock, nine recommend a “Strong Buy,” while four suggest a “Hold.” The average analyst price target for Evergy is $67.35, implying a potential upside of 4.9% from current levels.

On the date of publication,
Kritika Sarmah
did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is provided solely for informational purposes. For more details, please view the Barchart Disclosure Policy
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.