Back to top

Image: Bigstock

Eversource's (ES) Q1 Earnings and Revenues Top Estimates

Read MoreHide Full Article

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.

Eversource Energy Price, Consensus and EPS Surprise

Eversource Energy Price, Consensus and EPS Surprise

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

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 >>

Published in