Evergy, Inc. (EVRG, Financial) has made notable progress in the first quarter, bolstered by significant legislative actions that could boost economic growth and infrastructure development in the region. Missouri's Governor Mike Kehoe signed Senate Bill 4 into law on April 9th, focusing on enhancing infrastructure investments, resource adequacy, and sustainable growth. Concurrently, Kansas enacted Senate Bill 98 to improve the state's appeal to large data center clients. Moreover, House Bill 2107 was introduced to reinforce essential infrastructure improvements, particularly to reduce wildfire risks and stabilize operations.
The company is also advancing its energy production capabilities in Kansas by filing for approvals for new generation projects. These include settlements for cutting-edge natural gas plants and a solar farm, reflecting Evergy's commitment to modernizing its energy portfolio and enhancing service reliability. David Campbell, the company's chairman and CEO, emphasized these steps as vital for regional prosperity and operational security.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 11 analysts, the average target price for Evergy Inc (EVRG, Financial) is $72.56 with a high estimate of $78.00 and a low estimate of $67.00. The average target implies an upside of 4.19% from the current price of $69.64. More detailed estimate data can be found on the Evergy Inc (EVRG) Forecast page.
Based on the consensus recommendation from 14 brokerage firms, Evergy Inc's (EVRG, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Evergy Inc (EVRG, Financial) in one year is $63.73, suggesting a downside of 8.49% from the current price of $69.64. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Evergy Inc (EVRG) Summary page.
EVRG Key Business Developments
Release Date: February 27, 2025
- Adjusted Earnings Per Share (EPS): $3.81 per share for 2024, up from $3.54 per share in 2023.
- Adjusted Net Income: $878 million for 2024, compared to $816 million in 2023.
- Capital Investment: $2.3 billion invested in infrastructure in 2024.
- 2025 Adjusted EPS Guidance: Range of $3.92 to $4.12 per share, with a midpoint of $4.02 per share.
- Long-term EPS Growth Target: 4% to 6% through 2029.
- Revenue Increase Request: $196 million in Kansas rate review.
- Dividend Increase: 4% to an annualized $2.67.
- Weather Impact on EPS: $0.13 decline due to cooler summer and mild winter.
- Load Growth: 1.1% increase in 2024, with a 2.4% growth forecast for 2025.
- Five-Year Capital Plan: $17.5 billion from 2025 to 2029.
- Rate Base Growth: 8.5% annualized growth through 2029.
- Equity Issuance Forecast: $2.8 billion from 2026 to 2029.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Evergy Inc (EVRG, Financial) reported a solid year with adjusted earnings of $3.81 per share, up from $3.54 per share the previous year.
- The company executed a $2.3 billion capital investment plan to improve grid reliability and resiliency.
- Evergy Inc (EVRG) has a robust economic development pipeline, with significant projects from Google, Panasonic, and Meta, representing 800 megawatts of load.
- The company is reaffirming its 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with a long-term growth target of 4% to 6% through 2029.
- Evergy Inc (EVRG) successfully reached a unanimous settlement in the Missouri West rate case, reflecting strong regulatory execution and stakeholder alignment.
Negative Points
- Mild weather conditions led to a $0.13 decline in EPS due to decreased cooling and heating degree days.
- Operations and maintenance expenses increased, resulting in a $0.05 negative variance for the year.
- Higher depreciation and interest expenses due to increased infrastructure investment led to a $0.17 decrease in EPS.
- The company anticipates needing $2.8 billion in equity issuances from 2026 to 2029, reflecting increased capital investment needs.
- Regulatory and legislative processes in Kansas and Missouri are ongoing, with potential impacts on future infrastructure investments and tariffs.
