What's in the Cards for PNM Resources This Earnings Season?

PNM Resources PNM is scheduled to release first-quarter 2024 results on Apr 30, before market open. The company delivered an earnings surprise of 20% in the last reported quarter.
Let's discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

PNM Resources' first-quarter earnings are likely to have gained from increased load growth and higher transmission margins. The new rates, effective since January 2024, are also expected to have boosted first-quarter earnings.
However, still high interest rates and increased depreciation and property tax might have offset some positives in the to-be-reported quarter.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents per share, indicating a year-over-year increase of 23.6%.
The Zacks Consensus Estimate for revenues is pinned at $588.84 million, implying an 8.2% improvement year over year.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for PNM Resources this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company's Earnings ESP is 0.00%.
Zacks Rank: Currently, PNM Resources carries a Zacks Rank #3.

Stocks to Consider

Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.
CenterPoint Energy CNP is likely to come up with an earnings beat when it reports first-quarter earnings on Apr 30. It has an Earnings ESP of +3.92% and a Zacks Rank #3 at present.
CNP's long-term (three to five years) earnings growth rate is 7%. The Zacks Consensus Estimate for first-quarter 2024 earnings has decreased 3.8% in the past 30 days.
Ameren Corporation AEE is likely to come up with an earnings beat when it reports first-quarter earnings on May 2. It has an Earnings ESP of +0.30% and a Zacks Rank #3 at present.
AEE's long-term earnings growth rate is 6.5%. The Zacks Consensus Estimate for first-quarter 2024 earnings has decreased 0.9% in the past 60 days.
Eversource Energy ES is likely to come up with an earnings beat when it reports first-quarter 2024 earnings on May 2. It has an Earnings ESP of +2.76% and a Zacks Rank #2 at present.
ES' long-term earnings growth rate is 4.2%. The Zacks Consensus Estimate for first-quarter 2024 earnings has remained unchanged in the past 60 days.
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