Did Evergy meet its earnings expectations for the first quarter of 2024?

The filing does not state analyst expectations. It reports Q1 2024 GAAP EPS of $0.53 and adjusted EPS of $0.54, compared with $0.62 and $0.59 in Q1 2023, so both measures declined year over year.

What drove the lower adjusted EPS in the first quarter of 2024?

Management cited higher operation and maintenance expense, higher depreciation and amortization expense and higher interest expense. These were partially offset by new retail rates and transmission margin. Mild winter weather also reduced earnings by an estimated $(0.07) per share relative to normal weather.

Did Evergy change its 2024 guidance?

No. Evergy reaffirmed its 2024 GAAP and adjusted EPS guidance of $3.73 to $3.93 and its long-term adjusted EPS annual growth target of 4% to 6% through 2026.

What do the non-GAAP adjustments exclude?

Adjusted earnings exclude the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC, and costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event. In Q1 2024, the JEC hedge adjustment was $2.6 million pre-tax.

EVRG 8-K: Earnings & Results & Regulation FD

01—Abstract

Summary

Summary of the 8-K filed May 9, 2024. Cited figures are marked; the original filing is the authoritative source.

Evergy, Inc. (NASDAQ: EVRG) furnished this combined Form 8-K, filed on behalf of Evergy, Inc., Evergy Kansas Central, Inc. and Evergy Metro, Inc., announcing first quarter 2024 results, declaring a quarterly dividend and reaffirming 2024 guidance.

The company reported first quarter 2024 GAAP earnings of $122.7 million^a, or $0.53 per diluted share, versus $142.6 million, or $0.62 per share, in the first quarter of 2023. Adjusted (non-GAAP) earnings were $124.7 million, or $0.54 per share, compared with $136.1 million, or $0.59 per share, a year earlier. Management attributed the year-over-year decline in adjusted EPS to higher operation and maintenance expense, higher depreciation and amortization expense and higher interest expense, partially offset by new retail rates and transmission margin.

The filing states that mild winter weather reduced earnings by an estimated $(0.07) per share relative to normal weather. Management reaffirmed 2024 GAAP and adjusted EPS guidance of $3.73 to $3.93^b and a long-term adjusted EPS annual growth target of 4% to 6% through 2026, measured off the original $3.65 midpoint of 2023 adjusted EPS guidance. The board declared a quarterly dividend of $0.6425 per share, payable June 20, 2024 to shareholders of record as of May 20, 2024.

The filing also notes that Governor Laura Kelly signed Kansas House Bill 2527 on April 18, which the company says enhances the state's regulatory framework and supports new economic development in Kansas. The information is furnished under Items 2.02 and 7.01 and is not deemed filed for purposes of Section 18 of the Exchange Act. The full results are contained in Exhibit 99.1, a press release that also includes the GAAP to non-GAAP reconciliation and the 2024 guidance reconciliation.

02—Key points

Key Highlights

Q1 2024 GAAP EPS of $0.53 (net income $122.7 million), down from $0.62 in Q1 2023 ($142.6 million).
Q1 2024 adjusted EPS (non-GAAP) of $0.54 ($124.7 million), down from $0.59 ($136.1 million) in Q1 2023.
Mild winter weather reduced Q1 2024 earnings by an estimated $(0.07) per share relative to normal weather.
2024 GAAP and adjusted EPS guidance reaffirmed at $3.73 to $3.93, with no non-GAAP reconciling items in the guidance.
Long-term adjusted EPS annual growth target of 4% to 6% through 2026, reaffirmed off the original $3.65 midpoint of 2023 adjusted EPS guidance.
Quarterly dividend of $0.6425 per share declared, payable June 20, 2024 to holders of record as of May 20, 2024.
Kansas House Bill 2527, signed into law April 18, 2024, is described by management as enhancing the state's regulatory framework and supporting economic development.

03—Questions

Frequently Asked Questions

Did Evergy meet its earnings expectations for the first quarter of 2024?
The filing does not state analyst expectations. It reports Q1 2024 GAAP EPS of $0.53 and adjusted EPS of $0.54, compared with $0.62 and $0.59 in Q1 2023, so both measures declined year over year.
What drove the lower adjusted EPS in the first quarter of 2024?
Management cited higher operation and maintenance expense, higher depreciation and amortization expense and higher interest expense. These were partially offset by new retail rates and transmission margin. Mild winter weather also reduced earnings by an estimated $(0.07) per share relative to normal weather.
Did Evergy change its 2024 guidance?
No. Evergy reaffirmed its 2024 GAAP and adjusted EPS guidance of $3.73 to $3.93 and its long-term adjusted EPS annual growth target of 4% to 6% through 2026.
What dividend did Evergy declare and when is it paid?
The board declared a dividend of $0.6425 per share, payable June 20, 2024 to shareholders of record as of May 20, 2024.
What do the non-GAAP adjustments exclude?
Adjusted earnings exclude the mark-to-market impacts of economic hedges related to Evergy Kansas Central's 8% ownership share of JEC, and costs resulting from non-regulated energy marketing margins from the February 2021 winter weather event. In Q1 2024, the JEC hedge adjustment was $2.6 million pre-tax.

04—Continue

← View all 8-K filings