Evergy, Inc. Shows Strong Quarterly Growth Despite Market Lag

Kansas City, Missouri-based Evergy, Inc. (EVRG) generates, transmits, distributes, and sells electricity in the U.S. With a market cap of $14.6 billion, Evergy serves residences, commercial firms, industries, municipalities, and other electric utilities.

Yearly Performance Overview

Despite its strong fundamentals, Evergy’s stock hasn’t kept pace with the broader market this past year. Year-to-date (YTD), EVRG shares have risen by 21.4% and gained 31.9% over the last 12 months. In comparison, the S&P 500 Index ($SPX) achieved a YTD rally of 25.5% and a remarkable 35.7% over the past year.

When looking at sector performance, Evergy’s results fall slightly short of the Utilities Select Sector SPDR Fund’s (XLU) YTD gains of 23.7%. However, it has managed to outpace XLU’s 31.5% returns for the same annual period.

Q3 Earnings Boost Investor Confidence

Evergy’s shares saw a slight uptick following the release of positive Q3 earnings on November 7. The company reported an 8.5% increase in operating revenues, reaching $1.8 billion, which surpassed analyst expectations. Furthermore, adjusted earnings grew by 7.7% to $465.5 million. This growth is attributed to new retail rates, FERC-regulated investments, and rises in weather-normalized demand. Notably, EVRG’s adjusted EPS of $2.02 exceeded forecasts by 3.6%.

Future Guidance and Analyst Ratings

Encouraged by this performance, Evergy reaffirmed its full-year adjusted EPS guidance of $3.73 to $3.93 and projected adjusted EPS for fiscal 2025 at $3.92 to $4.12, strengthening investor confidence.

For the current fiscal year ending in December, analysts foresee an 8.5% year-over-year growth in adjusted EPS to $3.84. However, the company’s earnings surprise history remains mixed, with EVRG missing expectations in three of the last four quarters while outperforming in one.

The consensus recommendation for EVRG stock is a “Moderate Buy.” Of the 13 analysts who cover it, seven suggest a “Strong Buy,” while six advise a “Hold.” This is an improvement from a month ago when only six analysts recommended a “Strong Buy” rating.

Recently, on October 29, Mizuho analyst Anthony Crowdell provided coverage on EVRG with an “Outperform” rating and established a price target of $67. The average price target of $64 suggests a modest 1% increase from current prices, while the most optimistic target of $71 indicates a potential upside of 12%.

On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. For more information, please refer to the Barchart Disclosure Policy here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.