•
Sep 30, 2023

Evergy Q3 2023 Earnings Report

Evergy reported mixed results in Q3 2023, with GAAP EPS decreasing but adjusted EPS influenced by several factors.

Key Takeaways

Evergy announced third quarter 2023 GAAP earnings of $351.6 million, or $1.53 per share, compared to GAAP earnings of $428.2 million, or $1.86 per share, for third quarter 2022. Evergy's third quarter 2023 adjusted earnings (non-GAAP) and adjusted earnings per share (non-GAAP) were $432.3 million and $1.88, respectively, compared to $460.8 million and $2.00 in 2022. The company revised its 2023 adjusted EPS (non-GAAP) guidance range to $3.55 to $3.65.

GAAP EPS decreased to $1.53 in Q3 2023, compared to $1.86 in 2022.

Adjusted EPS (Non-GAAP) decreased to $1.88 in Q3 2023, compared to $2.00 in 2022.

The company increased quarterly dividend 5% to $0.6425 per share.

2023 adjusted EPS (Non-GAAP) guidance range was narrowed to $3.55 to $3.65 from $3.55 to $3.75.

Total Revenue
$1.67B
Previous year: $1.91B
-12.6%
EPS
$1.88
Previous year: $2.01
-6.5%
Dividend per share
$0.643
Gross Profit
$589M
Previous year: $918M
-35.9%
Cash and Equivalents
$41M
Previous year: $24.7M
+66.0%
Free Cash Flow
$283M
Previous year: $391M
-27.6%
Total Assets
$30.6B
Previous year: $29.2B
+4.7%

Evergy

Evergy

Forward Guidance

The Company revised its 2023 GAAP EPS guidance range to $3.22 to $3.32 from its original guidance of $3.55 to $3.75 and narrowed its 2023 adjusted EPS (non-GAAP) guidance range to $3.55 to $3.65 from its original guidance of $3.55 to $3.75. Additionally, the Company issued its new long-term adjusted EPS (non-GAAP) annual growth target of 4% to 6% through 2026 off the original $3.65 midpoint of 2023 guidance.

Positive Outlook

  • Narrowing 2023 adjusted EPS guidance range to $3.55 to $3.65.
  • Establishing a long-term growth target of 4% to 6% off the original 2023 midpoint of $3.65.
  • Focus on operational and financial execution.
  • Advancing constructive regulatory policies.
  • Constructive and competitive regulatory frameworks are crucial to compete for capital.

Challenges Ahead

  • Unfavorable weather compared to the corresponding period in the prior year.
  • Lower weather-normalized demand.
  • Higher depreciation and amortization expense.
  • Higher interest expense.
  • GAAP EPS guidance range revised to $3.22 to $3.32 from its original guidance of $3.55 to $3.75