News Summary
Evergy, Inc. released its first-quarter financial results, reporting a net income of $125 million, which fell short of expectations. Meanwhile, thousands of customers faced power outages due to equipment failure. The Kansas Corporation Commission is reviewing the company’s proposal for new natural gas plants amid concerns over rising costs. Evergy also announced a quarterly dividend of $0.6675 per share and cautiously optimistic long-term earnings guidance, despite ongoing operational challenges.
Kansas City
Evergy, Inc. has released first-quarter financial results that fell short of analysts’ expectations, reporting a net income of $125 million, equating to an earnings per share (EPS) of 54 cents. This performance missed the anticipated EPS estimate of 66 cents per share, as provided by three analysts from Zacks Investment Research. The company’s total revenue for the quarter stood at $1.37 billion.
Looking ahead, Evergy has projected its full-year earnings to be in the range of $3.92 to $4.12 per share. The slight increase in net income from $122.7 million in the same quarter of the previous year was attributed to ongoing maintenance shutdowns and rising expenses.
Power Outages Impact Local Customers
On Thursday morning, approximately 5,878 Evergy customers experienced power outages attributed to equipment failure. The outages affected various neighborhoods, including areas near the Country Club Plaza and extending from East 39th Street to 85th & Prospect Avenue. By 7:30 a.m., crews were addressing 17 outages to restore power to impacted areas.
Future Energy Plans Under Review
Evergy is currently under scrutiny from the Kansas Corporation Commission (KCC), which is expected to make a decision by July 7 regarding the company’s proposal to construct two new natural gas plants. Testimonies against these plans have surfaced, expressing concerns about unpredictable future costs of natural gas and suggesting alternative means for expanding power generation.
Analysts have emphasized the importance of Evergy’s strategy in managing natural gas procurement, noting that it should take into account the price volatility and delivery complexities associated with natural gas, as opposed to coal. The company’s current Integrated Resource Plan (IRP) has faced criticism for not keeping pace with shifting market conditions, prompting calls for a diversified energy portfolio that could mitigate risks tied to high natural gas prices and fluctuating market dynamics.
Dividend Declarations and Long-Term Outlook
In a show of confidence about its financial health, Evergy has declared a quarterly dividend of $0.6675 per share. The company has reaffirmed its earnings guidance for 2025, painting an optimistic long-term outlook supported by potential large customers within its operational regions.
Despite facing these challenges and criticisms, Evergy is working towards overcoming financial and operational hurdles while positioning itself for future growth and stability through long-term planning and resource diversification.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- Greenwich Time: Evergy Q1 Earnings Snapshot
- Wikipedia: Evergy
- KSHB: Evergy Power Outage Impacts
- Google Search: Evergy Power Outage
- Kansas Reflector: Experts Challenge Evergy Plans
- Encyclopedia Britannica: Evergy
- TipRanks: Evergy Q1 2025 Earnings
- Google News: Evergy Earnings
- CJ Online: Evergy Asks for Rate Increase
- Google Scholar: Evergy
