NWE Earnings Prediction
The chart below shows how NWE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NWE sees a +0.32% change in stock price 10 days leading up to the earnings, and a +0.19% change 10 days following the report. On the earnings day itself, the stock moves by +0.31%. This data can give you a slight idea of what to expect for the next quarter's release.
NWE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
345.16M
7.50%
7.89%
Gross Margin
58.04%
3.53%
-0.45%
Operating Margin
19.68%
13.56%
2.18%
Net Margin
13.56%
48.36%
37.11%
EPS
0.76
55.10%
46.15%
No Data Available
NWE Earnings Analysis
NorthWestern Energy Group, Inc. Common Stock Corporation (NWE.O) Earnings Conference Call
Positive
Earnings Growth Surge: 1. Strong Earnings Growth: NorthWestern Energy reported a GAAP net income of $46.8 million for Q3 2024, a significant increase from $29.3 million in the prior quarter, reflecting a growth of $0.28 per share.
Dividend Declaration Announcement: 2. Increased Dividend: The company declared a dividend of $0.65 per share, payable on December 31, 2024, to shareholders of record as of December 13, 2024, demonstrating a commitment to returning value to shareholders.
Major Grant Acquisition: 3. Significant Grant Award: NorthWestern received a $700 million grant from the U.S. Department of Energy for the Grid Resilience and Innovation Partnership, with $21 million allocated for investment in the Colstrip transmission system upgrades.
Earnings Growth Projection: 4. Positive Rate Base Growth Outlook: The company reaffirmed its long-term growth targets, projecting a 4% to 6% growth rate in earnings per share over the next five years, indicating confidence in future financial performance.
Financial Health Improvement: 5. Improved Financial Metrics: NorthWestern has shown steady improvement in its funds from operations (FFO) to debt metrics, which is crucial for maintaining strong credit ratings and financial health.
Negative
EPS Guidance Revision: 1. Revised EPS Guidance: NorthWestern Energy revised its 2024 non-GAAP EPS guidance down to a range of $3.32 to $3.47, from the previous range of $3.42 to $3.62, primarily due to delays in Montana interim rates.
Higher Costs Impact: 2. Impact of Higher Costs: The company reported higher insurance costs driven by wildfire coverage, alongside increased depreciation and interest costs, which negatively impacted overall financial performance.
Rate Relief Impact: 3. Delayed Rate Relief: The delay in interim rate relief in Montana is expected to negatively affect cash inflow, with potential impacts on credit metrics, as the company may fall below its downside threshold for 2024 without this relief.
Capital Expenditure Risks: 4. Increased Capital Expenditure Risks: The uncertainty surrounding the Montana Commission's decisions on interim rates and rate reviews poses risks to the company's capital investment plans, particularly regarding the $500 million investment needed for baghouses at Colstrip.
Regulatory Hurdles Ahead: 5. Regulatory Challenges: The ongoing complex regulatory landscape and the potential for further delays in rate decisions could hinder NorthWestern's ability to recover costs and maintain financial stability, impacting future growth prospects.
NWE FAQs
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NWE Earning Call Sentiment
NorthWestern Energy Group, Inc. (NWE) Q3 2024 Earnings Call Transcript
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00:00
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NWE.O
-0.52%Positive
The earnings call summary indicates strong financial performance with significant EPS growth, improved financial health metrics, and consistent dividend policy. Despite some regulatory delays, the management shows confidence in future rate implementations. The shareholder return plan is attractive, offering a total growth proposition of 9% to 11%. The Q&A section reveals some uncertainties about regulatory outcomes, but overall sentiment remains positive. Considering the company's market cap, the stock price is likely to experience a moderate positive movement (2% to 8%) over the next two weeks.