Why Is Avangrid (AGR) Up 1.3% Since Last Earnings Report?

Core Viewpoint - Avangrid's recent earnings report shows significant growth in earnings and revenues, outperforming estimates, but the stock has underperformed the S&P 500 in the past month, raising questions about future performance [1][2][3]. Financial Performance - Avangrid reported Q2 2024 earnings of 49 cents per share, exceeding the Zacks Consensus Estimate of 27 cents by 81.5% and increasing 133.3% from 21 cents in the same quarter last year [2]. - Total operating revenues reached $1.92 billion, surpassing the Zacks Consensus Estimate of $1.72 billion by 11.9% and reflecting a 21.2% increase from $1.59 billion in Q2 2023 [3]. Operating Expenses and Income - Operating expenses totaled $1.72 billion, up 17.9% from $1.46 billion in the prior year, primarily due to an 11.4% rise in purchased power, natural gas, and fuel costs [4]. - Operating income was $201 million, a 59.5% increase from $126 million reported in the previous year [4]. Net Income and Adjusted Figures - Adjusted net income for the quarter was $189 million, up 136.3% from $80 million in Q2 2023 [4]. - Segment performance showed Networks' adjusted net income at $152 million, doubling from $76 million year-over-year, while Renewables' net income was $70 million, a slight increase of 1.5% from $69 million [6]. Strategic Developments - Avangrid executed 578 MW of onshore wind and solar power purchase agreements and began construction on the Camino 57 MW solar farm in California [4]. - The company announced a deal to sell the offshore wind leasing area in Kitty Hawk North and received federal approval for New England Wind offshore projects [5]. Market Sentiment and Estimates - There has been a downward trend in estimates revisions, with a consensus estimate shift of -8.33% noted [7]. - Avangrid currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [9].