Back to top

Image: Bigstock

What's in Store for Eversource Energy (ES) in Q2 Earnings?

Read MoreHide Full Article

Eversource Energy (ES - Free Report) is scheduled to report second-quarter 2017 results before the opening bell on Jul 27. Last quarter, the company reported negative earnings surprise of 1.20%.

Let’s see how things are holding up for the second quarter.

Factors to Consider

Eversource Energy continues to manage its expenses quite effectively and is expected to gain from its cost reduction initiatives.

Like the first quarter, Eversource is expected to benefit from higher transmission investments, which will result in higher transmission earnings.

Eversource gets a portion of business function through third-party suppliers and service providers. Substandard performance by these third parties could harm its business and profitability.

Eversource Energy Price, Consensus and EPS Surprise

Earnings Whispers

Our proven model does not conclusively show that Eversource Energy is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate of 67 cents and the Zacks Consensus Estimate of 68 cents is pegged at – 1.47%.

Zacks Rank: Though Eversource Energy’s Zacks Rank #2 increases the predictive power of the ESP, its negative ESP makes surprise prediction difficult.

Note that we caution against stocks with Zacks Ranks #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks That Warrant a Look

Here are a few utility stocks which have the right combination of elements to post an earnings beat this quarter:

NiSource, Inc (NI - Free Report) has an earnings ESP of +10% and a Zacks Rank #2. It is expected to report second-quarter 2017 earnings on Aug 2.

The AES Corp. (AES - Free Report) has an earnings ESP of +20.00% and a Zacks Rank #2. It is expected to report second-quarter 2017 earnings on Aug 8.

Pattern Energy Group Inc. is expected to report second-quarter 2017 earnings on Aug 4. It has an earnings ESP of +23.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaries," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


NiSource, Inc (NI) - free report >>

The AES Corporation (AES) - free report >>

Eversource Energy (ES) - free report >>

Published in