Why Is PNM Resources (PNM) Down 20.1% Since Last Earnings Report?

Zacks Equity Research

A month has gone by since the last earnings report for PNM Resources (PNM). Shares have lost about 20.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is PNM Resources due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

PNM Resources' Earnings Meet Estimates in Q4, Up Y/Y

PNM Resources reported fourth-quarter 2019 earnings of 36 cents per share, which were in line with the Zacks Consensus Estimate. The bottom line improved 100% from year-ago quarter’s figure of 18 cents.

In 2019, the company reported earnings of $2.16 per share compared with $2 in 2018. The year-over-year increase was attributed to the company’s ability to respond and adapt business operations to changing conditions.

Total Revenues

The company generated Electric Operating revenues of $1.46 billion in 2019, up 1.5% from $1.43 billion in 2018.

Highlights of the Release

Total operating expenses in 2019 amounted to $1.3 billion, up 9.4% from expenses of $1.2 billion in 2018.

Operating income in 2019 was $144 million, down by 39% from $236 million in 2018.

In 2019, New Mexico’s Energy Transition Act established new RPS and 2045 carbon-free mandate.

Guidance

The company affirmed 2020 consolidated earnings per share (EPS) guidance in the range of $2.16-$2.26, whose midpoint of $2.21 is in line with the Zacks Consensus Estimate.

 

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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