What caused TXNM's EPS surprises in 2024?

TXNM Energy's EPS of $1.45 for Q3 2024, compared to the estimated $1.43, can be attributed to several key factors:

1. **Revenue Growth**: TXNM Energy reported a revenue of $569.3 million for Q3 2024, marking a 13% increase from the same period in the previous year. This growth in revenue is a direct result of the company's successful operations and market performance, which has enabled it to exceed earnings expectations.
2. **Net Income Increase**: The company's net income for Q3 2024 was $131.2 million, a significant surge of 248% from the $37.7 million recorded in Q3 2023. This substantial increase in net income reflects improved profitability and operational efficiency, which in turn contributes to higher EPS.
3. **Profit Margin Improvement**: TXNM Energy experienced a profit margin of 23% for Q3 2024, up from 7.5% in the same quarter of the previous year. Enhanced profitability margins indicate better cost management and operational effectiveness, leading to higher EPS.
4. **Financial Position and Infrastructure Investments**: The company's solid financial position, supported by healthy cash flows, allows for ongoing and future infrastructure investments. These investments likely contributed to operational efficiencies and revenue growth, thereby impacting EPS positively.

In summary, TXNM Energy's EPS surprise in Q3 2024 can be attributed to strong revenue growth, a significant increase in net income, improved profit margins, and a robust financial position that enables strategic investments.