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What's in the Cards for Eversource Energy in Q2 Earnings?

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We expect Eversource Energy (ES - Free Report) to beat earnings estimates when it reports second-quarter 2018 financial results on Aug 1, before the opening bell. The utility’s earnings in the last reported quarter were in line with the year-ago quarter.

What Our Quantitative Model Predicts

Our proven model shows that Eversource Energy is likely to beat estimates in the upcoming quarterly results. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates, and Eversource Energy has the right mix. You can see the complete list of today’s Zacks #1 Rank stocks here

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Earnings ESP of the company is pegged at +1.06%.

Eversource Energy Price and EPS Surprise

Zacks Rank: Currently, Eversource Energy carries a Zacks Rank #2. The combination of the company’s favorable Zacks Rank and a positive ESP makes us reasonably confident of a positive earnings surprise.

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

Factors to Consider

The Zacks Consensus Estimate for the second quarter is pegged at 75 cents, which reflects year-over-year growth of 4.16%.

Second-quarter earnings will benefit from the contribution of its acquired Aquarion Water Company. The new rates approved in Connecticut that became effective May 1 will also have a positive impact on the company’s earnings.

Other Stocks to Consider

In addition to Eversource Energy, investors can also consider the following players from the industry that also have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Dominion Energy (D - Free Report) is expected to report second-quarter 2018 numbers on Aug 1, 2018. It has an Earnings ESP of +2.93% and carries a Zacks Rank #2.

Exelon Corporation (EXC - Free Report) is slated to release second-quarter 2018 numbers on Aug 1, 2018. It has an Earnings ESP of +0.39% and carries a Zacks Rank #2.

Duke Energy Corporation (DUK - Free Report) is expected to report second-quarter 2018 numbers on Aug 2, 2018. It has an Earnings ESP of +0.52% and carries a Zacks Rank #2.

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