Nov 6 (Reuters) - Utility Evergy EVRG.O on Thursday missed the Wall Street adjusted profit estimates for the third quarter and trimmed the upper end of its 2025 adjusted earnings forecast due to the impact of milder summer weather and higher interest expenses.
A cooler-than-normal summer prompted consumers to decrease their usage of air conditioners and refrigerators during the quarter, reducing earnings of utilities such as Evergy.
"While we've implemented cost and mitigation actions across the business, these do not fully offset second- and third-quarter weather headwinds," CEO David Campbell said in a statement.
Utility companies have also struggled with persistently high interest rates, as it has made it more expensive to construct and maintain critical infrastructure, at a time when electricity demand is soaring due to an AI-led boom in data centers.
Evergy said interest expenses rose 5.63% to $152 million in the quarter ended September 30 from a year earlier, while its operating expenses fell 2.75% to $1.15 billion.
On an adjusted basis, the company posted a profit of $2.03 per share, missing estimates of $2.06 per share, according to data compiled by LSEG.
It expects the 2025 adjusted profit forecast to be in the range of $3.92 per share and $4.02 per share from its prior range of $3.92 per share and $4.12 per share.
Evergy provides power to 1.7 million customers in Kansas and Missouri through its operating subsidiaries Evergy Kansas Central, Evergy Metro and Evergy Missouri West.
(Reporting by Varun Sahay, Pooja Menon and Katha Kalia in Bengaluru; Editing by Vijay Kishore)
((Varun.sahay@thomsonreuters.com; Pooja.Menon@thomsonreuters.com;))
Comments