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Eversource Energy’s (ES - Free Report) third-quarter 2016 operating earnings of 83 cents per share beat the Zacks Consensus Estimate by 3.8% and were up 12.1% from the year-ago quarter figure of 74 cents.
Total Revenue
Eversource Energy’s third-quarter revenues of $2,040 million surpassed the Zacks Consensus Estimate of $1,968 million by 3.7% and improved 5.5% from the year-ago tally of $1,933.1 million.
Highlights of the Release
Operating expenses increased nearly 4.5% year over year to $1,529.9 million primarily on the back of higher energy efficiency expenses and higher taxes.
Operating income was up 8.7% to $509.9 million from $469.2 million a year ago.
In the reported quarter, interest expense was $99.9 million, up 8%.
Electric Distribution and Generation: Segment earnings inched up 1.8% to $170.1 million primarily on the back of higher retail revenues, partially offset by higher depreciation and property taxes resulting from increased investment in Eversource’s electric distribution systems.
Electric Transmission: Segment earnings surged 13.3% to $88.4 million backed by higher investment in transmission facilities.
Natural Gas Distribution: The segment reported a loss of $7.0 million, compared with the year-ago loss of $3.5 million.
Parent & Other Companies: The segment earned $13.8 million, while in the year-ago period, it had incurred a loss of $5.9 million.
Financial Update
Cash and cash equivalents were $40.1 million as of Sep 30, 2016, up from $23.9 million as of Dec 31, 2015.
Long-term debt was $9,235.1 million as of Sep 30, 2016, up from $8,805.6 million as of Dec 31, 2015.
Cash flow from operating activities during the first nine months of 2016 was $1,650.4 million, up from $1,351.3 million in the year-ago comparable period.
Guidance
Eversource Energy expects 2016 earnings per share in the range of $2.90 to $3.05. Long-term earnings and dividend growth is projected to be in the range of 5–7%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, outpacing the Zacks Consensus Estimate of $1.54 by 27.3%. The company carries a Zacks Rank #2.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2016 operating earnings of $1.30 per share, surpassing the Zacks Consensus Estimate of $1.21 by 7.4%. The company carries a Zacks Rank #3 (Hold).
Zacks Rank
Eversource Energy currently has a Zacks Rank #3.
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Eversource (ES) Tops Q3 Earnings & Revenue Estimates
Eversource Energy’s (ES - Free Report) third-quarter 2016 operating earnings of 83 cents per share beat the Zacks Consensus Estimate by 3.8% and were up 12.1% from the year-ago quarter figure of 74 cents.
Total Revenue
Eversource Energy’s third-quarter revenues of $2,040 million surpassed the Zacks Consensus Estimate of $1,968 million by 3.7% and improved 5.5% from the year-ago tally of $1,933.1 million.
Highlights of the Release
Operating expenses increased nearly 4.5% year over year to $1,529.9 million primarily on the back of higher energy efficiency expenses and higher taxes.
Operating income was up 8.7% to $509.9 million from $469.2 million a year ago.
In the reported quarter, interest expense was $99.9 million, up 8%.
EVERSOURCE EGY Price, Consensus and EPS Surprise
EVERSOURCE EGY Price, Consensus and EPS Surprise | EVERSOURCE EGY Quote
Segmental Performance
Electric Distribution and Generation: Segment earnings inched up 1.8% to $170.1 million primarily on the back of higher retail revenues, partially offset by higher depreciation and property taxes resulting from increased investment in Eversource’s electric distribution systems.
Electric Transmission: Segment earnings surged 13.3% to $88.4 million backed by higher investment in transmission facilities.
Natural Gas Distribution: The segment reported a loss of $7.0 million, compared with the year-ago loss of $3.5 million.
Parent & Other Companies: The segment earned $13.8 million, while in the year-ago period, it had incurred a loss of $5.9 million.
Financial Update
Cash and cash equivalents were $40.1 million as of Sep 30, 2016, up from $23.9 million as of Dec 31, 2015.
Long-term debt was $9,235.1 million as of Sep 30, 2016, up from $8,805.6 million as of Dec 31, 2015.
Cash flow from operating activities during the first nine months of 2016 was $1,650.4 million, up from $1,351.3 million in the year-ago comparable period.
Guidance
Eversource Energy expects 2016 earnings per share in the range of $2.90 to $3.05. Long-term earnings and dividend growth is projected to be in the range of 5–7%.
Peer Releases
WEC Energy Group (WEC - Free Report) reported third-quarter 2016 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 60 cents by 15%. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, outpacing the Zacks Consensus Estimate of $1.54 by 27.3%. The company carries a Zacks Rank #2.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2016 operating earnings of $1.30 per share, surpassing the Zacks Consensus Estimate of $1.21 by 7.4%. The company carries a Zacks Rank #3 (Hold).
Zacks Rank
Eversource Energy currently has a Zacks Rank #3.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>