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What's in Store for Eversource Energy's (ES) Q1 Earnings?

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Eversource Energy (ES - Free Report) is scheduled to report first-quarter 2019 financial results on May 2, before the opening bell. The utility delivered a negative earnings surprise of 2.67% in the last reported quarter.

Factors to Consider

Eversource Energy’s first-quarter earnings are expected to benefit from the expansion of the transmission rate base and implementation of new distribution rates in its service territories. Earnings are also anticipated to get a boost from the water distribution segment and cost-savings initiatives undertaken by the company.

However, higher interest expenses and property taxes remained woes during the quarter.

The Zacks Consensus Estimate for the first quarter is pegged at 91 cents, which indicates year-over-year growth of 7.1% from the year-ago reported figure.

Eversource Energy Price and EPS Surprise

What Our Quantitative Model Predicts

Our proven model shows that Eversource Energy is unlikely to beat estimates in the to-be-reported quarter. 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. It does not have right mix as you can see below.

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 +1.32%.

Zacks Rank: It currently carries a Zacks Rank #4 (Sell). The Sell-rated stocks (#4 or 5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Entergy Corporation (ETR - Free Report) is expected to release first-quarter results on May 1. It has an Earnings ESP of +3.99% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

PNM Resources Inc. (PNM - Free Report) is expected to release first-quarter results on May 7. It has an Earnings ESP of +3.45% and a Zacks Rank of 2.

Exelon Corporation (EXC - Free Report) is expected to release first-quarter results on May 2. It has an Earnings ESP of +0.46% and a Zacks Rank of 3.

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