RAPID CITY, S.D. - Black Hills Corp . (NYSE:BKH) reported a robust start to 2024, with first-quarter earnings surpassing analyst expectations.
The company's adjusted earnings per share (EPS) for the quarter were $1.87, an 8% increase from $1.73 in the first quarter of 2023 and $0.17 higher than the analyst estimate of $1.70. Revenue also exceeded forecasts, coming in at $726.4 million against the consensus estimate of $683.04 million, marking a significant jump from the previous year.
The company attributed its strong financial performance to new rates and rider recovery, as well as lower operating expenses, which more than compensated for the challenges posed by 10% lower heating degree days and the sale of non-core wind assets in the previous year.
"Our team delivered a strong start to the year and we are on track to meet our operational and financial objectives for the year," said Linn Evans, president and CEO of Black Hills Corp.
For the full year 2024, Black Hills Corp. has provided earnings guidance of $3.80 to $4.00 per share. This forecast brackets the analyst consensus of $3.91, with the midpoint of the guidance range at $3.90, slightly below the consensus.
Black Hills Corp. also reported progress in its regulatory schedule and capital investment plan, which includes significant developments in renewable energy resources.
The company is recommending a portfolio of 400 megawatts of clean energy resources in Colorado, aiming to achieve an 89% reduction in greenhouse gas emissions by 2030. Additionally, in South Dakota, the company is pursuing 100 megawatts of utility-owned renewable generation.
The company's stock movement in response to these results was not provided, indicating that the market reaction may not have been significant enough to report.
Evans concluded with optimism about the future, highlighting the growing demand from data center and blockchain customers and strategic opportunities in the company's $4.3 billion five-year capital plan.
Investors and analysts will be watching closely as Black Hills Corp. continues to navigate the balance between regulatory outcomes, capital investments, and operational efficiency in the evolving energy landscape.
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