Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN) Releases Earnings Results, Beats Estimates By $0.89 EPS

Key Points

• Edenor reported EPS of $0.72, beating analysts’ estimate of a $0.17 loss by $0.89; quarterly revenue was $772.7 million versus the $216.5 million consensus.
• Tariff normalization supported operating performance: third-quarter revenue rose 14% in real terms year over year, while nine-month EBITDA increased 58% excluding a prior-year settlement gain. Service reliability also improved to record-low outage and interruption levels.
• Challenges included a 25% year-over-year decline in third-quarter net profit and energy losses rising to 16.3%. Edenor said reducing energy losses remains a priority.

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) (NYSE:EDN - Get Free Report) issued its earnings results on Friday. The utilities provider reported $0.72 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.17) by $0.89, FiscalAI reports. Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) had a return on equity of 10.31% and a net margin of 7.46%. The business had revenue of $772.70 million during the quarter, compared to the consensus estimate of $216.48 million.

Here are the key takeaways from Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor)'s conference call:

• Tariff normalization continued to support results: third-quarter revenue rose 14% in real terms year over year, and nine-month EBITDA reached ARS 506 billion, up 58% excluding the prior-year CAMMESA settlement gain. Edenor also reported a 5% decline in nine-month operating expenses and a 95.08% collection rate.
• Service indicators improved to record lows, with third-quarter SAIDI at 5.3 hours and SAIFI at 2.7 outages per customer. The company attributed the gains to sustained network investment and technology upgrades.
• Energy losses increased to 16.3% over the last 12 months, which Edenor attributed to weather, tariff and subsidy changes, and weaker demand from large customers. Management said reducing losses remains a priority.
• Edenor’s accepted offer to acquire YPF’s 70% stake in MetroGAS remains subject to regulatory and government approvals, with closing expected before year-end. The company cited potential operating and commercial synergies, but said it will not operate MetroGAS until control transfers.
• Third-quarter net profit fell 25% year over year to ARS 43 billion, largely reflecting comparison with a prior-year quarter that included a CAMMESA settlement gain. Net financial expenses declined 10%, partly offsetting the pressure.

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) Price Performance

Shares of NYSE:EDN traded down $0.03 during midday trading on Friday, hitting $14.12. 85,734 shares of the stock were exchanged, compared to its average volume of 124,085. Empresa Distribuidora Y Comercializadora Norte S.A. has a twelve month low of $13.80 and a twelve month high of $36.70. The company has a current ratio of 1.46, a quick ratio of 1.28 and a debt-to-equity ratio of 0.49. The company has a 50 day moving average price of $20.91 and a 200-day moving average price of $25.13. The stock has a market cap of $638.70 million, a P/E ratio of 3.37 and a beta of 1.46.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings downgraded shares of Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) from a "hold (c-)" rating to a "sell (d+)" rating in a report on Friday, August 14th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Reduce".

Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) Company Profile

Empresa Distribuidora y Comercializadora Norte SA, commonly known as Edenor, is an Argentine electric utility that distributes electricity to residential, commercial and industrial customers. The company operates and maintains the low-, medium- and high-voltage distribution network, manages customer connections and metering, and provides related billing and customer-support services.

Edenor serves the northern and northwestern areas of the Buenos Aires metropolitan region, including portions of the Autonomous City of Buenos Aires and surrounding municipalities in Buenos Aires Province.

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