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Evergy (NYSE:EVRG) Q3 2020 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Evergy, Inc. (NYSE:EVRG) is scheduled to report Q3 earnings results before markets open for trading on November 5, 2020.

The company is expected to report earnings of $1.56/share on revenue of $1.559 billion. The consensus earnings per share (EPS) of $1.56/share is based on a poll of 6 analysts and represents a decline in eps of −0.8% over the same quarter last year, when the company reported earnings of $1.57/share.

The revenue forecast of $1.559 billion based on a poll of 2 analysts implies a year-over-year (YoY) decline in revenue of −1.2%. Last year the company reported $1.578 billion in revenue for the quarter.

Expected to report EPS contraction of −0.8% for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $1,559.10 $1,577.60 −1.2%
EPS $1.56 $1.57 −0.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 4 out of the last 8 tracked quarters, missed 2 quarters, and met expectations 2 quarters.

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

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.68 $0.68 0% Met
Q1, 2020 $0.42 $0.41 −1.8% Missed
Q4, 2019 $0.31 $0.32 3.7% Beat
Q3, 2019 $1.57 $1.57 0% Met
Q2, 2019 $0.56 $0.58 4.2% Beat
Q1, 2019 $0.42 $0.44 4.8% Beat
Q4, 2018 $0.25 $0.08 −68.3% Missed
Q3, 2018 $1.26 $1.34 6.1% Beat

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 falling −1.2%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $55.40 $54.75 −1.2% Decline
May 6, 2020 $57.29 $55.87 −2.5% Decline
March 2, 2020 $65.35 $68.85 5.4% Increase
November 6, 2019 $62.53 $62.82 0.5% Increase

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 −2.50, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.50 implies a 0.6% chance of earnings manipulation.

Fundamentals And Technical Analysis

Evergy, Inc. is currently trading at $55.45/share, down −1.7% for the day. The company is trading at approximately 73.1% of its 52-week high of $76.57/share. The company’s stock price is up 1.3% since the last earnings report and down −0.8% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 64.68 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:EVRG Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 19.85 and a forward P/E multiple of 18.47.

Evergy, Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.47. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $55.45
P/E Ratio 19.8x
P/E Ratio (Fwd) 18.5x
PEG Ratio 1.3
Total Debt / Total Capital 44.9%
Levered Free Cash Flow $364.5 million
EV / EBITDA 11.0x

Finbox

Evergy, Inc. is a large-cap stock with a market capitalization of $12.791 billion and a total enterprise value of $23.009 billion. The company operates in the Utilities sector and the Electric Utilities industry.

Evergy, Inc., through its subsidiaries, engages in the generation, transmission, distribution, and sale of electricity in Kansas and Missouri. It generates electricity through coal, nuclear, natural gas and oil, uranium, wind, hydroelectric, landfill gas, and solar energy sources, as well as other renewable sources. The company has approximately 10,100 circuit miles of transmission lines; 39,700 circuit miles of overhead distribution lines; and 12,700 circuit miles of underground distribution lines. It serves approximately 1,604,300 customers, including residences, commercial firms, industrials, municipalities, and other electric utilities. The company was incorporated in 2017 and is headquartered in Kansas City, Missouri.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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