- EDP reported a net income for the first quarter (1Q) at EU 354 million, which is a 17% increase year-over-year (y/y).
- The resultant figure surpassed estimates which stood at EU 321.5 million.
- The company’s net debt has reached EU 15.9 billion.
- EBITDA (earnings before interest, taxes, depreciation, and amortization) decreased by 5.2% y/y, standing at EU 1.34 billion.
- The company’s EBIT (earnings before interest and taxes), likewise, decreased by 7.9% y/y to hit EU 912 million.
- EDP noted that its recurring net profit for 1Q surged by 20% y/y.
- This success is attributed to the growing contribution of electricity networks in Brazil and the buyout of EDP Brasil minorities.
- EDP experienced a 9% drop in net financial costs due to a lowered cost of debt.
- However, owing to this decrease, the company saw a rise in net debt to EU 15.9b from EU 15.3b in December.
- In North America, the company registered gains of EU 58 million from asset rotation.
- With regards to the company’s stock rating, there are 21 buys, 3 holds, and 0 sells.
A look at EDP – Energias de Portugal SA Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
EDP – Energias de Portugal SA has a mixed long-term outlook based on Smartkarma Smart Scores. While the company scores well in Dividend, indicating a strong dividend payout to investors, its Value score is in the middle range, suggesting that the stock might not be undervalued. Growth and Resilience scores are also moderate, reflecting a steady but not exceptional performance in these areas. Momentum is relatively low, indicating a lack of positive market momentum. Overall, the company shows strength in dividend payments but may face challenges in terms of value and resilience in the long term.
EDP – Energias de Portugal SA is a key player in the electricity and gas sectors in Portugal and Spain, with operations also extending to Brazil, France, and Belgium. The company is engaged in various aspects of the energy industry, including generation, distribution, and supply, as well as wind power promotion and operations. With a diverse geographic footprint and involvement in multiple segments of the energy market, EDP is positioned as a significant player in the European energy landscape, albeit with some areas for potential improvement highlighted by the Smartkarma Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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