We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eversource Energy (ES) Q2 Earnings and Revenues Top Estimates
Read MoreHide Full Article
Eversource Energy (ES - Free Report) reported second-quarter 2022 operating earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 84 cents by 2.4%. The bottom line improved 8.9% year over year. The year-over-year improvement in earnings was due to strong contributions from the majority of the segments.
GAAP earnings per share for the second quarter were 84 cents, up 9.1% from 77 cents reported in the year-ago period. The difference between GAAP and operating earnings per share was due to one-time acquisition and settlement charges.
Revenues
Second-quarter revenues of $2,572.6 million surpassed the Zacks Consensus Estimate of $2,306 million by 11.6%. Total revenues improved 21.2% from the year-ago figure of $2,122.5 million.
Eversource Energy Price, Consensus and EPS Surprise
Operating expenses increased 26.7% year over year to $2,117.1 million due to a rise in Purchased Power, Fuel and Transmission expenses, and growth in operating and maintenance expenses.
Operating income was up 0.9% from the prior-year quarter to $455.6 million. Interest expenses increased 10.1% from the prior-year quarter to $160.1 million.
Net income for the quarter under review was $291.9 million, up 10.3% from $264.5 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment were $151.5 million, up 10.1% from the prior-year quarter. The improvement primarily resulted from a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment were $129 million, up 7.3% from the prior-year quarter. The improvement primarily resulted from higher revenues and lower pension-related costs.
Natural Gas Distribution: Earnings from this segment for the second quarter were $7.7 million, up 87.8% from the prior-year period. The upside resulted from higher revenues, offset marginally by higher operation and maintenance expenses.
Water Distribution: Earnings from this segment were $9 million, up 1.1% from the year-ago quarter.
Eversource Parent & Other Companies: The segment’s gain was $0.2 million against a loss of $0.9 million in the year-ago quarter.
Guidance
Eversource Energy narrowed its earnings guidance for 2022 to $4.04-$4.14 per share, excluding transaction and transition charges, from the previous range of $4.00 to $4.17 per share. The mid-point of management’s earnings guidance is $4.09, a tad lower than the Zacks Consensus Estimate of $4.11 for the year.
The company also reaffirmed its expectation for long-term earnings per share growth rate from the existing core regulated businesses in the upper half of 5-7% through 2026, using the $3.86 earned in 2021 as a base.
Eversource Energy plans to invest $3.89 billion in 2022. Its total capital expenditure for 2022-2026 is expected to be $18.1 billion, which will assist Eversource in achieving its carbon-neutral target by 2030.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2022 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 8%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 9.3%. The Zacks Consensus Estimate for NEE’s 2022 earnings per share of $2.87 indicates year-over-year growth of 12.55%.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2022 operating earnings per share of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%.
American Electric Power’s long-term earnings growth is projected at 6.2%. The Zacks Consensus Estimate for AEP’s 2022 earnings per share of $5.03 indicates year-over-year growth of 6.1%.
Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2022 operating earnings of 60 cents per share, in line with the Zacks Consensus Estimate.
Xcel Energy’s long-term earnings growth is projected at 6.4%. The Zacks Consensus Estimate for XEL’s 2022 earnings per share of $3.16 indicates year-over-year growth of 6.8%.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Eversource Energy (ES) Q2 Earnings and Revenues Top Estimates
Eversource Energy (ES - Free Report) reported second-quarter 2022 operating earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 84 cents by 2.4%. The bottom line improved 8.9% year over year. The year-over-year improvement in earnings was due to strong contributions from the majority of the segments.
GAAP earnings per share for the second quarter were 84 cents, up 9.1% from 77 cents reported in the year-ago period. The difference between GAAP and operating earnings per share was due to one-time acquisition and settlement charges.
Revenues
Second-quarter revenues of $2,572.6 million surpassed the Zacks Consensus Estimate of $2,306 million by 11.6%. Total revenues improved 21.2% from the year-ago figure of $2,122.5 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 26.7% year over year to $2,117.1 million due to a rise in Purchased Power, Fuel and Transmission expenses, and growth in operating and maintenance expenses.
Operating income was up 0.9% from the prior-year quarter to $455.6 million. Interest expenses increased 10.1% from the prior-year quarter to $160.1 million.
Net income for the quarter under review was $291.9 million, up 10.3% from $264.5 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment were $151.5 million, up 10.1% from the prior-year quarter. The improvement primarily resulted from a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment were $129 million, up 7.3% from the prior-year quarter. The improvement primarily resulted from higher revenues and lower pension-related costs.
Natural Gas Distribution: Earnings from this segment for the second quarter were $7.7 million, up 87.8% from the prior-year period. The upside resulted from higher revenues, offset marginally by higher operation and maintenance expenses.
Water Distribution: Earnings from this segment were $9 million, up 1.1% from the year-ago quarter.
Eversource Parent & Other Companies: The segment’s gain was $0.2 million against a loss of $0.9 million in the year-ago quarter.
Guidance
Eversource Energy narrowed its earnings guidance for 2022 to $4.04-$4.14 per share, excluding transaction and transition charges, from the previous range of $4.00 to $4.17 per share. The mid-point of management’s earnings guidance is $4.09, a tad lower than the Zacks Consensus Estimate of $4.11 for the year.
The company also reaffirmed its expectation for long-term earnings per share growth rate from the existing core regulated businesses in the upper half of 5-7% through 2026, using the $3.86 earned in 2021 as a base.
Eversource Energy plans to invest $3.89 billion in 2022. Its total capital expenditure for 2022-2026 is expected to be $18.1 billion, which will assist Eversource in achieving 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
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2022 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 8%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 9.3%. The Zacks Consensus Estimate for NEE’s 2022 earnings per share of $2.87 indicates year-over-year growth of 12.55%.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2022 operating earnings per share of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%.
American Electric Power’s long-term earnings growth is projected at 6.2%. The Zacks Consensus Estimate for AEP’s 2022 earnings per share of $5.03 indicates year-over-year growth of 6.1%.
Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2022 operating earnings of 60 cents per share, in line with the Zacks Consensus Estimate.
Xcel Energy’s long-term earnings growth is projected at 6.4%. The Zacks Consensus Estimate for XEL’s 2022 earnings per share of $3.16 indicates year-over-year growth of 6.8%.