PNM Resources Inc (PNM, Financial), a holding company that owns regulated utility companies providing electricity and electric services, reported its second quarter 2024 earnings. The company operates through its two subsidiaries, PNM and TNMP, which serve New Mexico and Texas, respectively.
Performance Overview
For the second quarter of 2024, PNM Resources Inc (PNM, Financial) reported GAAP earnings of $0.53 per diluted share, matching the same period last year. However, ongoing earnings were $0.60 per diluted share, up from $0.55 in Q2 2023. This performance exceeded the analyst estimate of $0.54 per share.
Revenue for the quarter was not explicitly stated in the filing, but the company's performance indicates a positive trend. The ongoing earnings guidance for 2024 remains affirmed at a range of $2.65 to $2.75 per diluted share.
Key Financial Achievements
PNM Resources Inc (PNM, Financial) reported GAAP net earnings attributable to the company of $48.0 million for Q2 2024, compared to $45.3 million in Q2 2023. The ongoing net earnings were $54.3 million, up from $47.4 million in the same period last year. These results highlight the company's ability to generate consistent earnings despite market challenges.
Segment Performance
The company's performance by segment is as follows:
| Segment | GAAP Diluted EPS Q2 2024 | GAAP Diluted EPS Q2 2023 | Ongoing Diluted EPS Q2 2024 | Ongoing Diluted EPS Q2 2023 |
|---|---|---|---|---|
| PNM | $0.34 | $0.36 | $0.41 | $0.38 |
| TNMP | $0.33 | $0.29 | $0.33 | $0.29 |
| Corporate and Other | ($0.14) | ($0.12) | ($0.14) | ($0.12) |
| Consolidated PNM Resources | $0.53 | $0.53 | $0.60 | $0.55 |
Challenges and Future Outlook
Despite the positive earnings, PNM Resources Inc (PNM, Financial) faces several challenges. The implementation of new retail rates, load growth, and hotter weather contributed positively, but these were offset by lower transmission margins, higher demand charges from battery storage contracts, and increased depreciation expenses. Additionally, higher interest rates on variable rate debt impacted the corporate segment.
GAAP earnings were also affected by $5.6 million of net unrealized losses on investment securities, compared to $2.5 million of net unrealized gains in Q2 2023. The issuance of additional shares in December 2023 also diluted earnings per share.
Management Commentary
"Results for the second quarter and first half of the year are ahead of expectations," said Pat Vincent-Collawn, PNM Resources Chairman and CEO. "Our long-term plans incorporate opportunities to invest and advance our grid infrastructure, including the System Resiliency Plan we will file at TNMP and Grid Modernization at PNM. As we move forward under the TXNM Energy name, we remain committed to providing reliable energy to our customers and communities across New Mexico and Texas."
Conclusion
PNM Resources Inc (PNM, Financial) has demonstrated strong financial performance in the second quarter of 2024, surpassing analyst estimates and affirming its ongoing earnings guidance. The company's strategic investments in grid infrastructure and modernization are expected to support its long-term growth and reliability goals. Investors and analysts can find additional materials and information on the company's quarterly results here.
Explore the complete 8-K earnings release (here) from PNM Resources Inc for further details.
