PNM Resources Earnings Preview

PNM Resources (NYSE: PNM  ) only managed to meet estimates last quarter, but investors hope that it will surpass expectations this quarter. The company will unveil its latest earnings Friday. PNM is an investor-owned holding company of energy and energy-related businesses.

What analysts say:

• Buy, sell, or hold?: Analysts think investors should stand pat on PNM Resources with nine of 10 analysts rating it hold. Analysts like PNM Resources better than competitor UniSource Energy overall. Zero out of four analysts rate UniSource Energy a buy compared with one of 10 for PNM Resources. While analysts still rate the stock a Hold, they are a little more optimistic about it compared with three months ago.
• Revenue Forecasts: On average, analysts predict $395 million in revenue this quarter. That would represent a decline of 2.7% from the year-ago quarter.
• Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.15 per share. Estimates range from $0.10 to $0.18.

What our community says:
CAPS All-Stars are solidly backing the stock with 89.2% granting it an "outperform" rating. The community at large backs the All-Stars with 88.7% assigning it a rating of "outperform." Fools are gung-ho about PNM Resources, though the message boards have been quiet lately with only 48 posts in the past 30 days. Though still bullish, the CAPS rating of four out of five stars for PNM Resources is a bit more pessimistic than the community assessment.

Management:
Over the last four quarters, revenue has increased 1.8% on average year over year.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross and net margins over the past four quarters.

For all our PNM Resources-specific analysis, including earnings and beyond, add PNM Resources to My Watchlist.

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