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Eversource (ES) to Report Q3 Earnings: What's in the Offing?

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Eversource Energy (ES - Free Report) is slated to release third-quarter 2020 financial results on Nov 4. The utility delivered an earnings surprise of 1.3% in the last reported quarter.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

Eversource’s third-quarter earnings are expected to have benefited from regulatory commission-approved distribution revenue decoupling mechanisms. Strong demand from residential customers is expected to have offset the slow recovery of demand from industrial and commercial customers in the to-be-reported quarter.

The storms that lashed Eversource’s service territories during the third quarter disrupted operations and are likely to have hurt its performance.

Expectation

The Zacks Consensus Estimate for third-quarter revenues and earnings per share is pegged at $2.27 billion and $1.02, indicating 4.1% and 4.08% growth, respectively, from the year-ago reported figures.

Eversource Energy Price and EPS Surprise

Eversource Energy Price and EPS Surprise

Eversource Energy price-eps-surprise | Eversource Energy Quote

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Eversource this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.

Earnings ESP: Its Earnings ESP is -1.06%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Eversource currently carries a Zacks Rank #3.

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.

Pampa Energia SA (PAM - Free Report) is likely release third-quarter 2020 results soon. It has an Earnings ESP of +1,537.50% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pinnacle West Capital Corporation (PNW - Free Report) is slated to release third-quarter 2020 results on Oct 30. It has an Earnings ESP of +0.98% and a Zacks Rank #3.

NiSource Inc. (NI - Free Report) is slated to release third-quarter 2020 results on Nov 2. It has an Earnings ESP of +150.00% and a Zacks Rank #3.

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