Core Viewpoint - The stock market is experiencing significant declines, reminiscent of the COVID-19 sell-off in 2020, with a looming global trade war and increased recession probabilities due to President Trump's new tariffs [1]. Group 1: Company Analysis - Kroger - Kroger's stock has risen approximately 14% despite the overall market downturn, indicating resilience [3]. - The company acknowledges potential tariff impacts, particularly on its produce business, but expects only a mid-single-digit percentage effect [4]. - Kroger is likely to perform well even in a recession, as grocery shopping remains essential, potentially increasing sales of its private-label products [5]. - Management expresses a proactive approach to tariffs, viewing them as an opportunity rather than a significant threat [6]. Group 2: Company Analysis - Evergy - Evergy, a utility company serving 1.7 million customers, has shown gains this year and is well-positioned amidst new tariffs [7]. - The company has a market cap of approximately $15.7 billion and a projected net income of $873.5 million for 2024, with a robust backlog of growth opportunities [8]. - There was no mention of tariffs in Evergy's earnings call, suggesting minimal impact from trade policies, and the company is expected to continue providing dividends with a yield over 3.8% [9]. Group 3: Company Analysis - Vertex Pharmaceuticals - Vertex Pharmaceuticals has seen its stock rise nearly 20% year-to-date, demonstrating strong performance amid tariff concerns [10]. - The company specializes in therapies for cystic fibrosis and is expanding its product line with new treatments, which are unlikely to be affected by tariffs [11]. - Vertex's pipeline includes several late-stage programs that could lead to significant revenue, including a potential cure for severe type 1 diabetes [13].

Core Viewpoint - Evergy, Inc. is focusing on expanding its operations in the transmission market through planned investments and strategic acquisitions, while also aiming to enhance its renewable asset portfolio to improve overall performance [1][2]. Group 1: Investment Plans - In 2024, Evergy plans to invest $2.34 billion in infrastructure to modernize the grid, replace aging equipment, and advance sustainability [2]. - The company targets nearly $17.5 billion in capital investments for the period of 2025-2029, which includes approximately $6.17 billion for new renewable generation [2]. Group 2: Renewable Projects - Evergy is actively developing renewable projects with a total capacity of 800 MW, of which 500 MW is included in its 2-3% demand forecast [3]. - The company announced plans to construct two combined-cycle natural gas plants in Kansas, each with an initial generating capacity of nearly 705 MW, expected to begin operations in the summer of 2029 and 2030 respectively [3]. Group 3: Joint Ventures - Evergy has a joint venture with American Electric Power named Transource Energy, which focuses on developing competitive electric transmission projects across the U.S., positioning Evergy for sustainable long-term growth in the transmission market with a 13.5% interest in the venture [4]. Group 4: Challenges - The company faces potential delays in capital projects due to permit issues, equipment availability, or increased costs, which could adversely impact profitability [5]. - Seasonal electricity sales and changing weather conditions significantly affect overall performance, with mild seasons potentially reducing electricity demand [5]. Group 5: Stock Performance - Over the past three months, Evergy's shares have increased by 14.8%, outperforming the industry's growth of 7.4% [6].

February 27, 2025 Fourth Quarter 2024 Earnings Call Important Information Forward Looking Statements Statements made in this document that are not based on historical facts are forward-looking, may involve risks and uncertainties, and are intended to be as of the date when made. Forward-looking statements include, but are not limited to, statements relating to Evergy's strategic plan, including, without limitation, those related to earnings per share, dividend, operating and maintenance expense and capital ...

Financial Data and Key Metrics Changes - For the full year 2024, Evergy reported adjusted earnings of $878 million or $3.81 per share, compared to $816 million or $3.54 per share for the same period last year, reflecting a year-over-year increase in adjusted EPS driven by strong cost management and load growth [49][50][66] - The adjusted EPS growth was impacted by a 5% decrease in cooling degree days and a 4% decrease in heating degree days, leading to a $0.13 decline in EPS versus 2023 [50] - The company reaffirmed its 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with a midpoint of $4.02, representing a 5% increase over the 2024 guidance midpoint [15][66] Business Line Data and Key Metrics Changes - Retail sales trends showed a weather-normalized increase of 1.1% in 2024, driven by solid growth in both residential and commercial usage [52][54] - The company anticipates a 2.4% growth in load demand for 2025, with significant contributions expected from new large customers such as Meta and Panasonic [53][54] Market Data and Key Metrics Changes - The economic development pipeline in Kansas and Missouri has grown from approximately 6 gigawatts to over 11 gigawatts, reflecting robust demand from large customers [18][19] - The company expects weather-normalized demand growth of 2% to 3% through 2029, with upside potential from additional customer wins [17][54] Company Strategy and Development Direction - Evergy's strategic objectives focus on affordability, reliability, and sustainability, with a five-year capital investment plan totaling $17.5 billion aimed at modernizing infrastructure and supporting economic growth [9][28][45] - The company is actively pursuing regulatory and legislative initiatives to support infrastructure investment and mitigate regulatory lag, including the passage of House Bill 2527 in Kansas [11][12][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges and maintain strong performance, citing successful regulatory execution and a solid capital investment plan [10][15] - The company anticipates continued growth driven by a strong labor market and robust customer demand in its service areas [53][54] Other Important Information - The company raised its dividend by 4% to an annualized $2.67, consistent with its target payout ratio [15] - Evergy's capital investment program is expected to result in 8.5% annualized rate base growth through 2029, compared to a prior forecast of approximately 8% [28][67] Q&A Session Summary Question: Timeline for finalizing agreements on 1.6 gigawatts - Management indicated that discussions are advancing well and expects announcements later this year, with agreements finalized over the course of the year [72][76][78] Question: Next steps for capital structure in Kansas - Management characterized the proceeding as procedural and expressed a desire to seek a constructive settlement during the rate case [79][82] Question: Timeline for developing associated generation - Management confirmed that they have a good plan to serve customers from both transmission and generation perspectives, with updates to the Integrated Resource Plans (IRPs) expected in March and April [89][92][100] Question: Protections for existing customers in large load tariff - Management is seeking a well-balanced tariff that covers incremental costs while providing protections for existing customers, including minimum bills and contract periods [107][111] Question: Timeline for Senate Bill 4 in Missouri - Management expressed confidence in the bill's passage, highlighting its transformative potential for the regulatory framework in Missouri [120][125] Question: Matching load with generation projects - Management provided clarity on the load forecast, indicating that they expect to have the necessary transmission and generation capacity to serve the anticipated load growth [126][130]

Financial Data and Key Metrics Changes - For the full year 2024, Evergy reported adjusted earnings of $878 million or $3.81 per share, compared to $816 million or $3.54 per share for the same period last year, reflecting a year-over-year increase in adjusted EPS driven by strong cost management and load growth [49][50][66] - The adjusted EPS growth was impacted by a 5% decrease in cooling degree days and a 4% decrease in heating degree days, leading to a $0.13 decline in EPS versus 2023 [50] - The company reaffirmed its 2025 adjusted EPS guidance range of $3.92 to $4.12 per share, with a midpoint of $4.02, representing a 5% increase over the 2024 guidance midpoint [15][66] Business Line Data and Key Metrics Changes - Retail sales trends showed a weather-normalized increase of 1.1% in 2024, driven by strong growth in both residential and commercial usage [52][53] - The company anticipates a 2.4% growth in load demand for 2025, with significant contributions expected from new large customers such as Meta and Panasonic [53][55] Market Data and Key Metrics Changes - The economic development pipeline in Kansas and Missouri has grown from approximately 6 gigawatts to over 11 gigawatts, reflecting robust demand from large customers [18][19] - The projected peak summer demand for 2025 is approximately 10.6 gigawatts, indicating a strong backlog of growth opportunities [19] Company Strategy and Development Direction - Evergy's strategic objectives focus on affordability, reliability, and sustainability, with a five-year capital investment plan totaling $17.5 billion aimed at modernizing infrastructure and supporting economic growth [9][28][45] - The company is actively pursuing regulatory and legislative initiatives to support infrastructure investment and mitigate regulatory lag, particularly in Kansas and Missouri [11][33][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges posed by weather and operational costs, reaffirming a long-term growth target of 4% to 6% through 2029 [15][66] - The management highlighted the importance of a competitive regulatory framework and successful execution of capital plans to support economic development in the region [11][12][45] Other Important Information - The company raised its dividend by 4% to an annualized $2.67, consistent with its target payout ratio [15] - Evergy's capital investment plan is expected to result in 8.5% annualized rate base growth through 2029, an increase from the prior forecast of approximately 8% [28][67] Q&A Session Summary Question: Timeline for finalizing agreements related to 1.6 gigawatts - Management indicated that discussions are advancing well and expects announcements later this year, with agreements finalized over the course of the year [72][76][78] Question: Next steps for capital structure in Kansas - Management characterized the proceeding as procedural and expressed a desire to seek a constructive settlement, similar to previous cases [79][82] Question: Timeline for developing associated generation - Management confirmed that they have a good plan to serve customers from both transmission and generation perspectives, with updates expected in the upcoming IRP filings [89][91][100] Question: Protections for existing customers in large load tariff - Management is seeking a well-balanced tariff that covers incremental costs while providing protections for existing customers, including minimum bills and contract periods [107][111] Question: Timeline for SB4 in Missouri - Management expressed confidence in the bill's passage, highlighting its transformative potential for the regulatory framework in Missouri [120][124] Question: Matching load with generation projects - Management provided clarity on the load forecast, indicating that they expect to have the necessary transmission and generation capacity to serve the anticipated load growth [126][130]

Core Insights - Evergy, Inc. reported fourth-quarter 2024 operating earnings per share (EPS) of 35 cents, which was 2.8% below the Zacks Consensus Estimate of 36 cents, but represented a 29.6% increase from the previous year's figure of 27 cents [1] - Full-year adjusted EPS for 2024 was $3.81, an increase from $3.54 in the prior year [2] Financial Performance - Quarterly revenues reached $1.26 billion, exceeding the Zacks Consensus Estimate of $1.194 billion by 5.3%, and up from $1.188 billion in the same quarter last year [3] - Full-year revenues for 2024 totaled $5.85 billion, compared to $5.51 billion in 2023 [3] Expense Overview - Fuel and purchased power costs for the year were $1.48 billion, a decrease of 0.6% from $1.49 billion the previous year [4] - Operating and maintenance expenses increased by 1.8% to $961.9 million from $945.3 million last year [4] - Interest expenses rose by 7% year-over-year to $563.1 million [4] Cash Flow and Debt - Cash and cash equivalents as of December 31, 2024, were $22 million, down from $27.7 million a year earlier [5] - Long-term debt increased to $11.81 billion from $11.05 billion as of December 31, 2023 [5] - Cash provided by operating activities in 2024 was $1.983 billion, slightly up from $1.980 billion in the previous year [5] Guidance and Growth Outlook - The company reaffirmed its 2025 GAAP EPS and adjusted EPS guidance of $3.92-$4.12, with the Zacks Consensus Estimate at $4.02 [6] - Evergy aims for an annual EPS growth target of 4-6% through 2029 [6] Zacks Rank - Evergy currently holds a Zacks Rank 3 (Hold) [7]

Core Viewpoint - Evergy Inc reported quarterly earnings of $0.35 per share, missing the Zacks Consensus Estimate of $0.36 per share, but showing an increase from $0.27 per share a year ago, indicating a mixed performance in earnings expectations [1][2] Financial Performance - The company posted revenues of $1.26 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 5.28%, compared to $1.19 billion in the same quarter last year [2] - Over the last four quarters, Evergy has exceeded consensus revenue estimates four times, but has only surpassed EPS estimates once [2] Stock Performance - Evergy shares have increased approximately 12.3% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $1.41 billion, and for the current fiscal year, it is $4.02 on revenues of $5.92 billion [7] - The outlook for the Utility - Electric Power industry is currently in the bottom 49% of Zacks industries, which may impact Evergy's stock performance [8]

Financial Performance - 2024 GAAP earnings were $873.5 million, or $3.79 per share, compared to $731.3 million, or $3.17 per share in 2023, representing a 19.4% increase in earnings[2] - Adjusted earnings (non-GAAP) for 2024 were $877.9 million, or $3.81 per share, up from $815.6 million, or $3.54 per share in 2023, reflecting a 7.9% increase[3] - Fourth quarter 2024 adjusted earnings (non-GAAP) were $80.6 million, or $0.35 per share, compared to $61.1 million, or $0.27 per share in Q4 2023, indicating a 32.9% increase[4] Dividends and Capital Investment - The company declared a quarterly dividend of $0.6675 per share, payable on March 21, 2025[10] - Evergy raised its 2025E-2029E capital investment plan to $17.5 billion, indicating a commitment to infrastructure investment[8] Earnings Guidance and Growth Expectations - The company reaffirmed its 2025 GAAP and adjusted (non-GAAP) EPS guidance range of $3.92 to $4.12[9] - Evergy expects long-term adjusted EPS (non-GAAP) annual growth of 4% to 6% through 2029, with growth anticipated in the upper half of this range starting in 2026[9] Business Development and Demand - The company is in advanced negotiations with two large data center customers as part of its 10-gigawatt project pipeline, reflecting strong demand in Kansas and Missouri[7] - Adjusted earnings (non-GAAP) for 2024 benefited from new retail rates and growth in weather-normalized demand, despite challenges from mild weather and higher expenses[5] Strategic Focus and Mission - Evergy's mission focuses on delivering reliable, affordable, and sustainable energy, with about half of its power coming from carbon-free sources[22] Risk Factors - Evergy Companies face risks from economic and weather conditions impacting sales, prices, and costs[25] - Significant changes in electricity demand and the ability to meet future demand are critical factors for Evergy's strategy[25] - The company is subject to regulatory actions that could affect customer rates and operational decisions[25] - Evergy Companies are managing risks related to the ownership and operation of nuclear facilities, including environmental and financial risks[26] - The ability to attract and retain qualified personnel is essential for maintaining operational efficiency[26] - Strategic initiatives such as mergers and acquisitions may not achieve expected value in a timely manner[26] - The impact of climate change and significant weather events poses additional operational challenges[25] - Evergy Companies are affected by geopolitical conflicts that influence the global energy market[26] - The company must navigate uncertainties related to supply chain issues and the availability of resources[26] - Future pandemic health events could impact sales, operations, and financial position[25]

Financial Performance - Evergy reported a total revenue of $1.5 billion for the last quarter, reflecting a 5% increase year-over-year[21] - The company achieved an earnings per share (EPS) of $0.85, which is a 10% increase compared to the previous quarter[21] - Evergy reported a year-over-year increase in earnings per share (EPS) of 10%, reaching $3.50 for the fiscal year[21] - The company reaffirmed its guidance for the full year, expecting EPS to be in the range of $3.30 to $3.50[21] Customer Growth - Evergy's customer base grew by 3% over the last year, adding approximately 30,000 new customers[21] - Evergy's customer base grew by 5% over the past year, with a total of 1.6 million customers served[23] Capital Investment and Infrastructure - The company plans to invest $2 billion in capital projects over the next three years to enhance infrastructure and meet future energy demands[21] - The company anticipates a capital investment of approximately $1.2 billion in the upcoming year to enhance infrastructure and meet growing energy demands[22] Renewable Energy Initiatives - Evergy is focusing on renewable energy, with a target of increasing its renewable generation capacity by 25% by 2025[21] - Evergy plans to expand its renewable energy portfolio, targeting an increase of 1,000 MW of wind and solar capacity by 2025[25] - The company has allocated $200 million for research and development of new energy technologies, including energy storage solutions[26] - The company aims to reduce carbon emissions by 30% by 2030, aligning with its sustainability goals[24] Operational Efficiency - Evergy has initiated a new energy efficiency program expected to save customers $50 million annually[21] - Evergy's operating expenses increased by 3% due to higher maintenance costs and inflationary pressures[21] - Evergy's operating and maintenance expenses are projected to increase by 4% in the next fiscal year due to inflationary pressures[27] Strategic Growth - Evergy is exploring potential acquisitions to expand its market presence, particularly in the Midwest region[21] - The company is exploring strategic partnerships for potential acquisitions to enhance its market position[28] Shareholder Returns - Evergy's dividend payout ratio is expected to remain stable at 60% of net income, ensuring consistent returns to shareholders[29] Customer Service Improvement - The company is committed to improving customer service metrics, aiming for a 15% reduction in response times to service requests[30]

Core Viewpoint - Evergy (EVRG) is set to release its fourth-quarter 2024 results on February 27, with expectations of a year-over-year earnings increase of 37% and a slight revenue growth of 0.5% [1][5]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for Evergy's earnings is 37 cents per share, reflecting a 37% increase compared to the previous year [5]. - Revenue expectations are set at $1.19 billion, indicating a 0.5% increase from the same quarter last year [5]. Group 2: Factors Influencing Earnings - Ongoing investments in grid modernization are expected to positively impact earnings, along with energy efficiency programs and cost-saving initiatives [3]. - Economic development in service territories is projected to contribute to growth in demand, further benefiting the bottom line [3]. Group 3: Potential Challenges - Higher depreciation and interest expenses are anticipated to negatively affect the earnings for the upcoming quarter [4]. - The company's Earnings ESP is -1.82%, indicating a lower likelihood of an earnings beat this time [6]. Group 4: Zacks Rank - Evergy currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [7].