The case for & against
Bull & Bear analysis
Bullish
Evergy, Inc. (NASDAQ: EVRG) is a prominent electric utility holding company, serving over 1.6 million customers across Kansas and Missouri. The company provides regulated energy services and is actively expanding its capabilities to meet increasing electricity demand driven by large-scale data centers and advanced manufacturing. Evergy is in a favorable position in the energy transition landscape, marked by its commitment to sustainable practices and reliability, along with substantial growth initiatives that anticipate significant infrastructure developments through 2032.
Bull says
- ↑7-8% retail load CAGR through 2030 via large ESAs.
- ↑Q2’26 EPS +7.3% YoY to $0.88; revenue +4.4% to $1.5B.
- ↑$21.6B five-year CapEx for gas, solar, and battery storage.
- ↑Proactive tariff structure and regulatory engagement support growth.
- ↑High dividend yield and low stock volatility appeal to investors.
- ↑Positive momentum and leverage capacity enhance funding flexibility.
Bear says
- ↓Q2’26 EPS down $0.08 YoY due to higher O&M and depreciation.
- ↓Weak profitability metrics challenge revenue-to-profit conversion.
- ↓Pending Missouri rate case introduces regulatory and rate risks.
- ↓Short interest at 26% signals investor skepticism and volatility.
- ↓Ambitious expansion may face delays, risking unmet demand growth.
- ↓Lagging analyst revisions and balance sheet vulnerability heighten downside risk.
Investment themes with EVRG
High Dividend Yield↓ -0.51%
Companies paying above-average dividends
AVGO · JPM · XOM
Earnings Call · Q4 2023 · Mgmt. Guidance
Updated 04-18-2025neutral
Transcript signals
Bull points
- For the full year 2023, adjusted earnings were $815.6 million or $3.54 per share that’s compared to $853.8 million or $3.71 per share for the same period last year. Higher transmission margins resulting from our ongoing investments to enhance our transmission infrastructure drove a $0.04 increase and to help offset challenges from higher interest expense, regulatory lag, weather and demand, we accelerated cost management initiatives, which drove a positive $0.41 variance year-over-year.
- 2% to 3% annualized weather-normalized growth in demand from 2023 to 2026, reflecting the impact of those large new customers on top of base demand growth of 0.5% to 1%.
- We expect a year-over-year increase in O&M of less than $20 million driving a $0.06 of lower EPS, primarily due to one-time items in 2023, driven by changes in capitalization.
Bear points
- For the fourth quarter of 2023, Evergy delivered adjusted earnings of $61.1 million or $0.27 per share, and that’s compared to $68.6 million or $0.30 per share in the fourth quarter of 2022. The year-over-year decrease in fourth quarter earnings was driven by a following: first, a 14% decrease in heating degree days led to a $0.05 decrease in EPS for the quarter. This impact was driven by warmer-than-normal weather over the final 2 months of 2023, which drove a $0.06 variance to our plan. Higher interest expense drove a $0.07 decrease, and a $0.26 decrease from higher depreciation expense.
- Our 2023 results reflect a 6% year-over-year decrease in cooling degree days and a 13% decrease in heating degree days, which drove a $0.28 decrease in EPS versus 2022.
- disappointed by these results
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