Avangrid (NYSE:AGR) Q3 Earnings: What Can You Expect?

in EARNINGS/INVESTING IDEAS by

Avangrid, Inc. (NYSE:AGR) is scheduled to report Q3 earnings results after markets close for trading on October 20, 2020.

The company is expected to report earnings of $0.41/share on revenue of $1.518 billion. The consensus earnings per share (EPS) of $0.41/share is based on a poll of 9 analysts and represents a growth in eps of 2.0% over the same quarter last year, when the company reported earnings of $0.40/share.

The revenue forecast of $1.518 billion based on a poll of 5 analysts implies a year-over-year (YoY) growth in revenue of 2.1%. Last year the company reported $1.487 billion in revenue for the quarter.

Expected to report EPS growth of 2.0% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,517.88 $1,487.00 2.1%
EPS $0.41 $0.40 2.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 1 out of the last 8 tracked quarters, missed 6 quarters, and met expectations 1 quarters.

What are your expectations from Avangrid, Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.34 $0.32 −6.0% Missed
Q1, 2020 $0.76 $0.76 0.1% Beat
Q4, 2019 $0.76 $0.74 −3.0% Missed
Q3, 2019 $0.52 $0.40 −23.2% Missed
Q2, 2019 $0.39 $0.33 −15.7% Missed
Q1, 2019 $0.80 $0.71 −11.0% Missed
Q4, 2018 $0.62 $0.56 −9.2% Missed
Q3, 2018 $0.46 $0.45 −1.6% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 1.4%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
July 21, 2020 $47.57 $48.25 1.4% Increase
April 28, 2020 $45.57 $44.58 −2.2% Decline
February 25, 2020 $56.57 $51.85 −8.3% Decline
October 29, 2019 $49.63 $49.39 −0.5% Decline

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.69, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.69 implies a 0.4% chance of earnings manipulation.

Fundamentals And Technical Analysis

Avangrid, Inc. is currently trading at $54.54/share, down −1.0% for the day. The company is trading at approximately 96.0% of its 52-week high of $57.24/share. The company’s stock price is up 13.0% since the last earnings report and down −2.0% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 70.16 suggests the company is trading in technically overbought territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:AGR Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 24.08 and a forward P/E multiple of 25.58.

Avangrid, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.10. The following table summarizes some other key fundamental ratios:

Data as of October 19, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $54.54
P/E Ratio 24.1x
P/E Ratio (Fwd) 25.6x
PEG Ratio 1.1
Total Debt / Total Capital 32.0%
Levered Free Cash Flow -$1.088 billion
EV / EBITDA 13.5x

Finbox

Avangrid, Inc. is a large-cap stock with a market capitalization of $17.023 billion and a total enterprise value of $25.979 billion. The company operates in the Utilities sector and the Electric Utilities industry.

Avangrid, Inc. operates as an energy services holding company in the United States. It operates through two segments, Networks and Renewables. The company engages in the generation, transmission, and distribution of electricity, as well as distribution, transportation, and sale of natural gas. It also develops, constructs, and operates renewable energy generation facilities primarily using onshore wind power, as well as solar, biomass, and thermal power. The company delivers natural gas and electricity to residential, commercial, and institutional customers through its regulated utilities in New York, Maine, Connecticut, and Massachusetts; and sells its output to investor-owned utilities, public utilities, and other credit-worthy entities. In addition, it generates and provides power and other services to federal and state agencies, as well as institutional retail and joint action agencies; and delivers thermal output to wholesale customers in the Western United States. Avangrid, Inc. owns eight electric and natural gas utilities, serving 3.3 million customers in New York and New England, as well as owns and operates 8.0 gigawatts of electricity capacity, primarily through wind power in 22 states. The company was founded in 1852 and is headquartered in Orange, Connecticut. Avangrid, Inc. is a subsidiary of Iberdrola, S.A.

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