National Grid Pre-Close Update Signals Expected EPS Growth

In its latest report, British utility firm National Grid Plc confirms its performance aligns with expectations, projecting underlying earnings per share to be skewed towards a stronger second half of the fiscal year, indicating potential revenue improvement.

Date: 03-10-2024

AI Rating: 7

The recent report highlights important insights regarding National Grid Plc's performance and expectations for the upcoming fiscal period. Notably, it mentions:

Earnings Per Share (EPS): The underlying EPS is forecasted to be weighted toward the second half of the year, suggesting potential for increased profitability as the fiscal year progresses.
Operating Profit Contribution: The company anticipates an additional £70 million contribution from the Electricity System Operator, outpacing prior guidance. This contribution reflects positive operational dynamics and effective management of resources, which is crucial for sustaining EPS growth.
Operating Profit Weighting: In both UK and US regulated businesses, operating profits are expected to shift towards the latter half of the year, reflecting historical performance trends and a possible recovery in demand or efficiency improvements from previous periods.
NG Ventures Operating Profit: A roughly 40:60 weighting for operating profit between the first and second half indicates strategic planning that could enhance overall profitability.

This strategic outlook may underpin investor confidence, potentially stabilizing or boosting stock prices as the market accounts for expected enhancements in operating profits and EPS in the latter half of the fiscal period.

Stocks: NGG