Eversource Energy ( ES Quick Quote ES - Free Report) reported second-quarter 2020 operating earnings of 76 per share, on par with the Zacks Consensus Estimate. However, the reported earnings improved 2.7% year over year. The year-over-year improvement in earnings was due to strong execution of its operations amid the pandemic. Total Revenues
Second-quarter revenues of $1,953 million lagged the Zacks Consensus Estimate of $2,042 million by 4.4%. However, total revenues improved 3.7% from the year-ago figure of $1,884 million.
Highlights of the Release
Operating expenses decreased 12.3% year over year to $1,519.5 million. Operating income was up 187.4% from the prior-year quarter to $433.7 million. Interest expenses increased 1.2% year over year to $134.3 million.
Net income in the quarter under review was $252.2 million, up substantially from $31.4 million recorded in the year-ago period. Segmental Performance Electric Distribution: Earnings from this segment were $115 million, up 9.1% from the prior-year quarter. The upside was primarily attributed to higher revenues, partially offset by increased depreciation, operation and maintenance, as well as interest expenses. Electric Transmission: Earnings of the segment were up 10.7% year over year to $129.5 million. The upside was due to increased investment in Eversource’s transmission facilities. Natural Gas Distribution: This segment’s income was $3.3 million against a loss of $1.8 million in the year-ago quarter. The year-over-year improvement was due to higher revenues, partially offset by increased operation and maintenance expenses, as well as high depreciation costs. Water Distribution: Earnings from this segment were $10.4 million, up 30% from $8 million in the year-ago quarter. The improved results were primarily due to higher revenues and lower depreciation expense. Eversource Parent & Other Companies: The segment’s loss was $2.1 million against earnings of $7.3 million in the year-ago quarter. Guidance
Eversource reaffirmed its 2020 earnings guidance in the range of $3.60-$3.70 per share. The midpoint of management’s 2020 EPS guidance is $3.65, which is higher than the current Zacks Consensus Estimate of $3.62 for the period.
The company expects long-term earnings to improve 5-7% from contribution from the existing core regulated businesses. Eversource reiterated its capital expenditure view of $14.2 billion for the 2020-2024 time period. 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
NextEra Energy, Inc. (
NEE Quick Quote NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, which surpassed the Zacks Consensus Estimate of $2.50 by 4.4%. Edison International ( EIX Quick Quote EIX - Free Report) reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%. Dominion Energy Inc. ( D Quick Quote D - Free Report) reported second-quarter 2020 operating earnings of 82 cents per share, which beat the Zacks Consensus Estimate by a penny. Breakout Biotech Stocks with Triple-Digit Profit Potential
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