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PNM Resources (PNM) Q3 Earnings Top Estimates,'22 View Raised

Zacks Equity Research
·4-min read

PNM Resources PNM reported third-quarter 2022 earnings of $1.46 per share, which beat the Zacks Consensus Estimate of $1.29 by 13.2%. The bottom line also improved 6.6% from the year-ago earnings of $1.37 per share.

The year-over-year increase in earnings was due to better performance of its segments Public Service Company of New Mexico (PNM) and Texas-New Mexico Power Company (TNMP).

GAAP earnings for the quarter were $1.42 per share, up 7.6% from the prior-year quarter’s reading of $1.32.

Total Revenues

Total revenues for the third quarter were $729.9 million, up 31.6% from $554.5 million in the year-ago quarter.

PNM Resources, Inc. Price, Consensus and EPS Surprise

PNM Resources, Inc. Price, Consensus and EPS Surprise
PNM Resources, Inc. Price, Consensus and EPS Surprise

PNM Resources, Inc. price-consensus-eps-surprise-chart | PNM Resources, Inc. Quote

Segment Details

PNM: Earnings from this segment were $1.17 per share, up 11.4% year over year. The surge in earnings from this segment was driven by an increase in transmission margins due to higher system demand and new customers, including the Western Spirit transmission contract, higher market prices and increased usage due to load growth.

TNMP: Earnings from this segment were 36 cents per share, up 9.1% year over year. The surge in earnings was due to increased usage of load growth and weather, along with rate recovery through increases in Transmission Cost of Service and Distribution Cost of Service.

Corporate and Other: Loss in the reported quarter was 7 cents wider than the year-ago quarter’s loss of 2 cents. Higher interest rates on variable rate debt increased year-over-year losses.

Highlights of the Release

Total operating expenses for the reported quarter were $547.1 million, up 35.8% from $402.8 million in the year-ago quarter, due to an increase in the cost of energy, transmission and distribution.

The operating income in the reported quarter improved by 20.4% from the prior-year quarter’s reading to $182.7 million.

PNM Resources and AVANGRID announced the amendment and extension of their merger agreement through Apr 20, 2023. The companies filed the statement of issues in the appeal of the New Mexico Public Regulation Commission decision with the New Mexico Supreme Court.

Guidance

PNM Resources raised its 2022 EPS guidance to the range of $2.63-$2.68 from the earlier range of $2.50-$2.60. The midpoint of the above-guided range for 2022 is $2.65, lower than the Zacks Consensus Estimate of $2.60 per share. PNM Resources affirmed its 2023 guidance in the band of $2.60-$2.75 per share. The company targets 5% earnings per share CAGR for the 2020-2025 time period.

PNM reiterated its four-year investment plan of $3.5 billion for 2022-2025 to improve transmission and distribution infrastructure.

Zacks Rank

PNM Resources currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

IDACORP, Inc. IDA reported third-quarter 2022 earnings of $2.10 per share, which surpassed the Zacks Consensus Estimate of $1.95 by 7.7%.

The Zacks Consensus Estimate for IDA’s 2022 earnings is pegged at $5 per share, suggesting an increase of 3.09% year over year.

Pinnacle West Capital Corporation PNW reported third-quarter 2022 operating earnings per share of $2.88, which surpassed the Zacks Consensus Estimate of $2.62 by 9.9%.

The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 23 cents per share, suggesting a decline of 195.8% from the year-ago quarter.

MDU Resources Group Inc. MDU reported third-quarter 2022 operating earnings per share of 75 cents, which surpassed the Zacks Consensus Estimate of 69 cents by 8.7%.

The Zacks Consensus Estimate for MDU’s fourth-quarter earnings is pegged at 51 cents per share, suggesting an increase of 21.4% from the year-ago quarter.


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