The chart below shows how BKH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, BKH sees a -1.15% change in stock price 10 days leading up to the earnings, and a +0.35% change 10 days following the report. On the earnings day itself, the stock moves by +0.12%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
EPS Growth Overview: In 2024, Black Hills Corporation achieved a 4.3% EPS growth, reaching $3.75, and is guiding for approximately 5% EPS growth in 2025.
Energy Investment Strategy: The company invested over $800 million in core energy needs, supporting customer and community growth across its service areas.
Credit Rating Stability: Black Hills Corporation has maintained a solid investment-grade credit rating and achieved its net debt to capitalization target of 55% in 2024.
Customer Growth Trajectory: The company has a strong customer growth trajectory, with a 1% annual increase in customer count over the last five years, significantly outpacing the national average of 0.4%.
Dividend Increase Announcement: A 4% increase in dividends was announced, marking 55 consecutive years of dividend increases, reflecting a commitment to returning value to shareholders.
Negative
Earnings Performance Shortfall: EPS growth was only 4.3% in 2024, falling short of the 2023 guidance midpoint of $3.75, indicating weaker-than-expected earnings performance.
Weather Impact on EPS: Mild weather negatively impacted EPS by $0.20 compared to normal and $0.15 compared to 2023, highlighting vulnerability to external conditions.
EPS Reduction Impact: Unplanned generation outages contributed to a $0.05 EPS reduction, reflecting operational challenges that affected overall performance.
Rising Interest Expenses: Interest expenses increased by $0.16 per share due to higher interest rates, indicating rising costs that could pressure future profitability.
O&M Expense Management Challenges: O&M expenses were managed to less than a 1% increase, but this was still impacted by rising insurance costs of $0.09 and unplanned outages, suggesting ongoing cost pressures.
Black Hills Corporation (NYSE:BKH) Q4 2024 Earnings Call Transcript
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