Eversource Energy (ES - Free Report) reported fourth-quarter 2020 operating earnings of 85 cents per share, which matched the Zacks Consensus Estimate. Further, the bottom line improved 11.8% year over year. The improvement in earnings was due to strong execution and contribution from the acquired he Columbia Gas assets.
Total Revenues
Fourth-quarter revenues of $2,233.9 million beat the Zacks Consensus Estimate of $2,226 million by 0.4%. Total revenues also improved 8.9% from the year-ago figure of $2,050.4 million.
Highlights of the Release
Operating expenses increased 10.2% year over year to $1,779.2 million. Operating income was up 4.4% from the prior-year quarter to $454.7 million. Interest expenses increased 1.3% to $135.4 million.
Net income in the quarter under review was $291.2 million, up 16.5% from $250 million recorded in the year-ago period.
Segmental Performance
Electric Distribution: Earnings from this segment were $93.4 million, up 2.9% from the prior-year quarter. The upside was primarily attributed to higher revenues, partially offset by increased operation and maintenance costs due to high storm restoration cost.
Electric Transmission: The segment’s earnings were up 2.2% year over year to $120.7 million. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: This segment’s earnings soared 57.3% to $62.3 million. The year-over-year improvement was due to higher revenues in NSTAR Gas and Yankee Gas and also contribution from acquired assets of Columbia Gas of Massachusetts.
Water Distribution: Earnings from this segment were $5.6 million, down from $8.5 million in the year-ago quarter.
Eversource Parent & Other Companies: The segment’s earnings were $9.2 million against loss of $6.9 million in the year-ago quarter.
Guidance
Eversource provided 2021 earnings guidance in the range of $3.81-$3.93 per share. The midpoint of management’s earnings guidance is $3.87, which is lower than the Zacks Consensus Estimate of $3.90 for the year.
Eversource expects long-term earnings growth through 2025 from its core regulated utility segments to be in the range of 5-7%.
The company expects its capital expenditure for 2021 to be $3.5 billion. Its total capital expenditure for 2021-2025 time period is expected to be $17 billion, which will assist Eversource to achieve its carbon neutral target by 2030.
Zacks Rank
Eversource currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
WEC Energy Group (WEC - Free Report) reported fourth-quarter 2020 earnings per share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents by 2.7%.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.
Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2020 operating earnings of 81 cents per share, which beat the Zacks Consensus Estimate by 5.2%.
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Eversource Energy (ES - Free Report) reported fourth-quarter 2020 operating earnings of 85 cents per share, which matched the Zacks Consensus Estimate. Further, the bottom line improved 11.8% year over year. The improvement in earnings was due to strong execution and contribution from the acquired he Columbia Gas assets.
Total Revenues
Fourth-quarter revenues of $2,233.9 million beat the Zacks Consensus Estimate of $2,226 million by 0.4%. Total revenues also improved 8.9% from the year-ago figure of $2,050.4 million.
Highlights of the Release
Operating expenses increased 10.2% year over year to $1,779.2 million. Operating income was up 4.4% from the prior-year quarter to $454.7 million. Interest expenses increased 1.3% to $135.4 million.
Net income in the quarter under review was $291.2 million, up 16.5% from $250 million recorded in the year-ago period.
Segmental Performance
Electric Distribution: Earnings from this segment were $93.4 million, up 2.9% from the prior-year quarter. The upside was primarily attributed to higher revenues, partially offset by increased operation and maintenance costs due to high storm restoration cost.
Electric Transmission: The segment’s earnings were up 2.2% year over year to $120.7 million. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: This segment’s earnings soared 57.3% to $62.3 million. The year-over-year improvement was due to higher revenues in NSTAR Gas and Yankee Gas and also contribution from acquired assets of Columbia Gas of Massachusetts.
Water Distribution: Earnings from this segment were $5.6 million, down from $8.5 million in the year-ago quarter.
Eversource Parent & Other Companies: The segment’s earnings were $9.2 million against loss of $6.9 million in the year-ago quarter.
Guidance
Eversource provided 2021 earnings guidance in the range of $3.81-$3.93 per share. The midpoint of management’s earnings guidance is $3.87, which is lower than the Zacks Consensus Estimate of $3.90 for the year.
Eversource expects long-term earnings growth through 2025 from its core regulated utility segments to be in the range of 5-7%.
The company expects its capital expenditure for 2021 to be $3.5 billion. Its total capital expenditure for 2021-2025 time period is expected to be $17 billion, which will assist Eversource to achieve its carbon neutral target by 2030.
Zacks Rank
Eversource currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Other Releases
WEC Energy Group (WEC - Free Report) reported fourth-quarter 2020 earnings per share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents by 2.7%.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.
Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2020 operating earnings of 81 cents per share, which beat the Zacks Consensus Estimate by 5.2%.
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Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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