Eversource Energy (ES - Free Report) reported first-quarter 2020 operating earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate by 4.6%.
The bottom line also improved 12.8% year over year. The improvement in earnings was due to strong execution and contribution from the acquired Columbia Gas assets.
Revenues
First-quarter revenues of $2,825.8 million beat the Zacks Consensus Estimate of $2,641 million by 7%. Total revenues also improved 19% from the year-ago figure of $2,373.7 million.
Highlights of the Release
Operating expenses increased 22.1% year over year to $2,240.3 million. Operating income was up 8.6% from the prior-year quarter to $585.6 million. Interest expenses increased 2.3% to $137.8 million.
Net income for the quarter under review was $368 million, up 9.3% from $336.6 million recorded in the year-ago period.
Segmental Performance
Electric Distribution: Earnings from this segment were $93.2 million, down 28.4% from the prior-year quarter. The decline was due to higher storm-related cost, and increased depreciation as well as property tax expenses.
Electric Transmission: The segment’s earnings were up 6.8% year over year to $135.4 million. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: This segment’s earnings soared 71.8% from the prior-year quarter to $147.6 million. The year-over-year improvement was due to higher revenues in NSTAR Gas and Yankee Gas as well as contribution from the acquired assets of Columbia Gas in Massachusetts.
Water Distribution: Earnings from this segment were $3.6 million, up from $2.1 million in the year-ago quarter.
Eversource Parent & Other Companies: The segment’s loss was $13.7 million compared with a loss of $10.1 million in the year-ago quarter.
Guidance
Eversource expects earnings for 2021 to be at the lower end of the guided range of $3.81-$3.93 per share. The midpoint of management’s earnings guidance is $3.87, which is higher than the Zacks Consensus Estimate of $3.86 for the year.
The company expects capital expenditure for 2021 to be $3.5 billion. Its total capital expenditure for the 2021-2025 time period is expected to be $17 billion, which will assist Eversource to achieve carbon neutral target by 2030.
Zacks Rank
Eversource currently carries a Zacks Rank #4 (Sell).
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 first-quarter 2021 earnings per share of $1.61, which beat the Zacks Consensus Estimate of $1.47 by 9.5%.
FirstEnergy Corporation (FE - Free Report) recorded first-quarter 2021 operating earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 68 cents by 1.5%.
American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.
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Eversource Energy (ES - Free Report) reported first-quarter 2020 operating earnings of $1.15 per share, which surpassed the Zacks Consensus Estimate by 4.6%.
The bottom line also improved 12.8% year over year. The improvement in earnings was due to strong execution and contribution from the acquired Columbia Gas assets.
Revenues
First-quarter revenues of $2,825.8 million beat the Zacks Consensus Estimate of $2,641 million by 7%. Total revenues also improved 19% from the year-ago figure of $2,373.7 million.
Highlights of the Release
Operating expenses increased 22.1% year over year to $2,240.3 million. Operating income was up 8.6% from the prior-year quarter to $585.6 million. Interest expenses increased 2.3% to $137.8 million.
Net income for the quarter under review was $368 million, up 9.3% from $336.6 million recorded in the year-ago period.
Segmental Performance
Electric Distribution: Earnings from this segment were $93.2 million, down 28.4% from the prior-year quarter. The decline was due to higher storm-related cost, and increased depreciation as well as property tax expenses.
Electric Transmission: The segment’s earnings were up 6.8% year over year to $135.4 million. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: This segment’s earnings soared 71.8% from the prior-year quarter to $147.6 million. The year-over-year improvement was due to higher revenues in NSTAR Gas and Yankee Gas as well as contribution from the acquired assets of Columbia Gas in Massachusetts.
Water Distribution: Earnings from this segment were $3.6 million, up from $2.1 million in the year-ago quarter.
Eversource Parent & Other Companies: The segment’s loss was $13.7 million compared with a loss of $10.1 million in the year-ago quarter.
Guidance
Eversource expects earnings for 2021 to be at the lower end of the guided range of $3.81-$3.93 per share. The midpoint of management’s earnings guidance is $3.87, which is higher than the Zacks Consensus Estimate of $3.86 for the year.
The company expects capital expenditure for 2021 to be $3.5 billion. Its total capital expenditure for the 2021-2025 time period is expected to be $17 billion, which will assist Eversource to achieve carbon neutral target by 2030.
Zacks Rank
Eversource currently carries a Zacks Rank #4 (Sell).
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 first-quarter 2021 earnings per share of $1.61, which beat the Zacks Consensus Estimate of $1.47 by 9.5%.
FirstEnergy Corporation (FE - Free Report) recorded first-quarter 2021 operating earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 68 cents by 1.5%.
American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
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.
Free: See Our Top Stock and 4 Runners Up >>
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