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Eversource's (ES) Q3 Earnings and Revenues Lag Estimates
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Eversource Energy (ES - Free Report) reported third-quarter 2021 operating earnings of $1.02 per share, which lagged the Zacks Consensus Estimate of $1.05 by 2.9%.
The bottom line, however, improved 1% year over year. The improvement in earnings was due to strong contribution from the acquired Columbia Gas of Massachusetts assets, and solid performance of Electric Transmission and Electric Distribution segments.
Revenues
Third-quarter revenues of $2,461.2 million missed the Zacks Consensus Estimate of $2,572 million by 4.3%. Total revenues, however, improved 5% from the year-ago figure of $2,343.7 million.
Eversource Energy Price, Consensus and EPS Surprise
Operating expenses increased nearly 10.9% year over year to $1,977.9 million. Operating income was down 13.9% from the prior-year quarter to $483.3 million. Interest expenses increased 10.3% from the prior-year quarter to $145.4 million.
Net income for the quarter under review was $285.1 million, down 18.1% from $348.1 million recorded in the year-ago period.
Segmental Performance
Electric Distribution: Earnings from this segment were $213.6 million, up 3.9% from the prior-year quarter. The improvement was primarily due to higher revenues, offset by increased operation and maintenance expenses as well as depreciation and property taxes.
Electric Transmission: Earnings from this segment were $139.4 million, up 11% from the prior-year quarter. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: This segment incurred a loss of $22 million compared with a loss of $15.4 million in the prior-year quarter.
Water Distribution: Earnings from this segment were $17.5 million, down 24.3% from $23.1 million in the year-ago quarter.
Eversource Parent & Other Companies: The segment’s earnings were $2.2 million compared with $12.8 million in the year-ago quarter.
Guidance
Eversource reaffirmed its earnings guidance for 2021 in the 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 $3.84 for the year.
The company also reaffirmed its expectation for long-term earnings per share growth rate from existing core regulated businesses in the upper half of 5-7%, using the $3.64 per share earned in 2020 as a base.
Eversource reaffirmed its capital expenditure view 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 its carbon neutral target by 2030.
Zacks Rank
Eversource currently carries a Zacks Rank #3 (Hold).
FirstEnergy Corporation (FE - Free Report) came up with third-quarter 2021 operating earnings of 82 cents per share, surpassing the Zacks Consensus Estimate of 81 cents by 1.2%.
Avangrid, Inc. (AGR - Free Report) reported third-quarter 2021 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 30 cents by 13.3%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.
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Eversource's (ES) Q3 Earnings and Revenues Lag Estimates
Eversource Energy (ES - Free Report) reported third-quarter 2021 operating earnings of $1.02 per share, which lagged the Zacks Consensus Estimate of $1.05 by 2.9%.
The bottom line, however, improved 1% year over year. The improvement in earnings was due to strong contribution from the acquired Columbia Gas of Massachusetts assets, and solid performance of Electric Transmission and Electric Distribution segments.
Revenues
Third-quarter revenues of $2,461.2 million missed the Zacks Consensus Estimate of $2,572 million by 4.3%. Total revenues, however, improved 5% from the year-ago figure of $2,343.7 million.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote
Highlights of the Release
Operating expenses increased nearly 10.9% year over year to $1,977.9 million. Operating income was down 13.9% from the prior-year quarter to $483.3 million. Interest expenses increased 10.3% from the prior-year quarter to $145.4 million.
Net income for the quarter under review was $285.1 million, down 18.1% from $348.1 million recorded in the year-ago period.
Segmental Performance
Electric Distribution: Earnings from this segment were $213.6 million, up 3.9% from the prior-year quarter. The improvement was primarily due to higher revenues, offset by increased operation and maintenance expenses as well as depreciation and property taxes.
Electric Transmission: Earnings from this segment were $139.4 million, up 11% from the prior-year quarter. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: This segment incurred a loss of $22 million compared with a loss of $15.4 million in the prior-year quarter.
Water Distribution: Earnings from this segment were $17.5 million, down 24.3% from $23.1 million in the year-ago quarter.
Eversource Parent & Other Companies: The segment’s earnings were $2.2 million compared with $12.8 million in the year-ago quarter.
Guidance
Eversource reaffirmed its earnings guidance for 2021 in the 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 $3.84 for the year.
The company also reaffirmed its expectation for long-term earnings per share growth rate from existing core regulated businesses in the upper half of 5-7%, using the $3.64 per share earned in 2020 as a base.
Eversource reaffirmed its capital expenditure view 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 its carbon neutral target by 2030.
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) came up with third-quarter 2021 operating earnings of 82 cents per share, surpassing the Zacks Consensus Estimate of 81 cents by 1.2%.
Avangrid, Inc. (AGR - Free Report) reported third-quarter 2021 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 30 cents by 13.3%.
DTE Energy Company (DTE - Free Report) reported third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.