PNM Resources Reports Decline in 2024 Q1 Earnings

PNM Resources has released its first quarter 2024 results, reporting a decrease in both GAAP and ongoing earnings compared to the same period in 2023. The company's GAAP net earnings attributable to PNM Resources for the first quarter of 2024 were $47.2 million, down from $55.0 million in the first quarter of 2023. This translated to GAAP diluted earnings per share (EPS) of $0.52 in Q1 2024, a decline from $0.64 in Q1 2023.

Similarly, the ongoing net earnings for the first quarter of 2024 were $37.0 million, lower than the $47.6 million reported in the first quarter of 2023. The ongoing diluted EPS for Q1 2024 came in at $0.41, down from $0.55 in Q1 2023.

The segment reporting revealed that the PNM segment, TNMP segment, and Corporate and Other segment all experienced decreases in both GAAP and ongoing diluted EPS compared to the first quarter of 2023.

The company's press release also mentioned specific factors contributing to the changes in earnings, including the implementation of new retail rates, improved performance by decommissioning and reclamation trusts, lower transmission margins, higher demand charges from battery storage contracts, new depreciation rates, and depreciation expense associated with new capital investments.

Additionally, PNM Resources reported that its GAAP earnings for the first quarter of 2024 included a gain from the sale of New Mexico renewable development, offset by PNM regulatory disallowances. Net unrealized gains on investment securities for decommissioning and reclamation increased in the first quarter of 2024 compared to the first quarter of 2023.

The company's management affirmed its 2024 consolidated ongoing earnings guidance of $2.65 to $2.75 per diluted share.

PNM Resources will be discussing these results in a conference call and webcast on April 30, 2024. The company's regulated utilities, PNM and TNMP, provide electricity to more than 800,000 homes and businesses in New Mexico and Texas. PNM Resources aims to achieve 100% emissions-free generation by 2040. As a result of these announcements, the company's shares have moved -0.5% on the market, and are now trading at a price of $36.86. For the full picture, make sure to review PNM Resources's 8-K report.

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