Should investors worry about TXNM's recent EPS misses?

**Investors should not overly worry about TXNM's recent EPS misses.** Here's why:

1. **Contextualize the Miss**: The EPS miss of $0.02 might seem concerning, but it's important to consider the broader financial context. TXNM Energy reported a net income of $242.2 million, an increase of 176% from the previous year, and a profit margin of 12%, up from 4.5% in 2023. This indicates a strong financial performance despite the EPS miss.

|code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|TXNM|TXNM.N|TXNM Energy|2024 Q1|-0.07|0.52|169|
|TXNM|TXNM.N|TXNM Energy|2024 Q2|0.04|0.53|169|
|TXNM|TXNM.N|TXNM Energy|2024 Q3|0.03|1.45|169|
|TXNM|TXNM.N|TXNM Energy|2024 Q4|-0.02||169|

2. **Revenue Performance**: While TXNM Energy missed revenue estimates by 5.4%, the company's revenue grew by 1.7% to $1.97 billion, up from FY 2023. This growth in revenue suggests that the company is expanding its market presence and increasing its customer base, which could be more important than a slight miss in EPS.
3. **Strategic Investments**: TXNM Energy has announced a significant increase in its capital investment plan, raising it to $7.8 billion. These investments are likely to enhance grid infrastructure and reliability, driving future growth and potentially leading to improved financial performance over time.
4. **Dividend Stability**: TXNM Energy has a history of consistently increasing dividends, with a 5% increase announced recently. This demonstrates the company's commitment to returning value to shareholders and may offset some concerns about the EPS miss.
5. **Market Sentiment and Analysts' Views**: Despite the EPS miss, TXNM Energy's stock has shown resilience, with a 7.08% surge due to strategic expansion into renewable energy markets. Analysts have maintained positive outlooks, with Mizuho upgrading the stock to Outperform with a $53 price target. This suggests that the market may be more focused on the company's long-term growth potential than a single quarter's EPS miss.
6. **Potential Sale and M&A Activity**: The company is reportedly exploring a potential sale, which could be a catalyst for value realization. This strategic move could potentially lead to a premium valuation for the company, benefiting shareholders.
7. **Financial Health and Growth Prospects**: TXNM Energy's financial health is underscored by a strong gross profit margin of 58.43% and a consistent track record of earnings growth. The company's growth targets and strategic investments in renewable energy markets suggest a positive outlook for the future.

In conclusion, while an EPS miss can be a concern, it's important to consider the overall financial health and growth prospects of the company. TXNM Energy's strong revenue growth, strategic investments, dividend stability, and positive market sentiment suggest that investors should not overly worry about the recent EPS misses.