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Eversource (ES) Q2 Earnings In Line, Revenues Miss Estimates

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Eversource Energy (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.

Eversource Energy Price, Consensus and EPS Surprise

Eversource Energy Price, Consensus and EPS Surprise

Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote

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 - 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 - 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 - Free Report) reported second-quarter 2020 operating earnings of 82 cents per share, which beat the Zacks Consensus Estimate by a penny.

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