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Eversource (ES) Q3 Earnings Lag, Revenues Beat Estimates

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Eversource Energy (ES - Free Report) reported third-quarter 2020 operating earnings of $1.01 per share, which missed the Zacks Consensus Estimate by a penny. However, the reported earnings improved 3.1% year over year. The year-over-year improvement in earnings was due to strong execution of its operations amid the pandemic.

Total Revenues

Third-quarter revenues of $2,343.6 million beat the Zacks Consensus Estimate of $2,265 million by 3.47%. Total revenues also improved 7.7% from the year-ago figure of $2,175.8 million.

Highlights of the Release

Operating expenses increased 6.9% year over year to $1,782.4 million. Operating income was up 10.2% from the prior-year quarter to $561.2 million. Interest expenses dropped 0.8% year over year to $134.3 million.

Net income for the quarter under review was $346.3 million, up 8.6% from $318.9 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 $205 million, up 4.2% 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, as well as interest expenses.

Electric Transmission: Earnings of the segment were up 16.8% year over year to $125.6 million. The upside was due to increased investment in Eversource’s transmission facilities.

Natural Gas Distribution: This segment’s loss was $14 million, narrower than a loss of $17.1 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 $23.1 million, up 32% from $17.5 million in the year-ago quarter. The improved results were due to gains from the Hingham, Massachusetts water distribution system sale and lower interest rates.

Eversource Parent & Other Companies: The segment’s earnings were $11.4 million compared with $13.7 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 $3.63 for the 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

FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%.

Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, which surpassed the Zacks Consensus Estimate of $1.08 by 5.6%.

Exelon Corporation’s (EXC - Free Report) third-quarter 2020 operating earnings of $1.04 per share surpassed the Zacks Consensus Estimate of 87 cents by 19.5%.

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