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Sep 30, 2020

PNM Resources Q3 2020 Earnings Report

PNM Resources reported increased earnings due to record temperatures and affirmed earnings guidance.

Key Takeaways

PNM Resources reported third quarter results with increased earnings driven by record temperatures in August. The company affirmed its 2020 consolidated ongoing earnings guidance of $2.23 to $2.31 per diluted share.

PNM's GAAP and Ongoing earnings increased during the third quarter of 2020, reflecting increases in retail sales from the combined impacts of COVID-19 and record-high August temperatures.

TNMP’s GAAP and ongoing earnings increased in the third quarter of 2020 due to the implementation of Transmission Cost of Service (TCOS) rate increases implemented in September 2019 and March 2020 and a Distribution Cost of Service (DCOS) rate increase implemented in September 2020.

Corporate and Other’s ongoing losses were reduced in the third quarter of 2020 due to higher tax benefits resulting from a higher effective tax rate.

The company recently announced a merger with AVANGRID (NYSE: AGR) that is strategically aligned in the transition to clean energy and commitment to ESG principles and will provide benefits to customers, communities, employees and shareholders.

Total Revenue
$472M
Previous year: $434M
+9.0%
EPS
$1.4
Previous year: $1.29
+8.5%
Gross Profit
$472M
Previous year: $434M
+9.0%
Cash and Equivalents
$30.9M
Previous year: $20.1M
+53.7%
Total Assets
$7.74B
Previous year: $7.2B
+7.5%

PNM Resources

PNM Resources

PNM Resources Revenue by Segment

Forward Guidance

Management affirmed its recently increased 2020 consolidated ongoing earnings guidance of $2.23 to $2.31 per diluted share, targeting the midpoint of this range.

Revenue & Expenses

Visualization of income flow from segment revenue to net income