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Eversource Energy (ES) Q3 Earnings Lag Estimates, Sales Beat
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Eversource Energy (ES - Free Report) reported third-quarter 2022 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.03 by 1.9%. The earnings dropped nearly 1% year over year.
GAAP earnings per share for the third quarter were $1, up 21.9% from 82 cents reported in the year-ago period. The difference between GAAP and operating earnings per share was due to one-time tax charges.
Revenues
Third-quarter revenues of $3,215.6 million surpassed the Zacks Consensus Estimate of $2,716 million by 18.4%. Total revenues improved 32.2% from the year-ago figure of $2,432.8 million.
Eversource Energy Price, Consensus and EPS Surprise
Operating expenses increased 36.4% year over year to $2,658.4 million due to a rise in Purchased Power, Fuel and Transmission expenses and an increase in operating and maintenance expenses.
Operating income was up 15.3% from the prior-year quarter at $557.3 million. Interest expenses increased 20.5% from the prior-year quarter to $178.2 million.
Net income for the quarter under review was $351.3 million, up 23.3% from $285 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment were $155.8 million, up 11.8% 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 $225.1 million, up 5.4% from the prior-year quarter. The improvement primarily resulted from higher revenues and lower pension-related costs.
Natural Gas Distribution: Losses from this segment for the third quarter were $24.6 million, wider than the prior-year period’s loss of $22 million. The weak performance was due to higher non-tracked O&M, property taxes, depreciation and interest expenses, partially offset by higher revenues and lower pension expenses.
Water Distribution: Earnings from this segment were $16.7 million, down from $17.5 million in the year-ago quarter. The year-over-year decline was due to higher operating and maintenance expenses driven by the increased cost of water treatment chemicals.
Eversource Parent & Other Companies: The segment lost $21.4 million against earnings of $2.2 million in the year-ago quarter.
Guidance
Eversource Energy reaffirmed its 2022 earnings guidance of $4.04-$4.14 per share, excluding transaction and transition charges. The mid-point of 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.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 79 cents by 7.6%.
The Zacks Consensus Estimate for NEE’s fourth-quarter earnings per share is 56 cents, implying growth of 36.6% from the year-ago quarter’s reported number.
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating earnings per share (EPS) of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%.
The Zacks Consensus Estimate for FE’s fourth-quarter earnings per share is 53 cents, indicating growth of 3.92% from the year-ago quarter’s reported figure.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2022 operating earnings of $1.18 per share, lagging the Zacks Consensus Estimate by 1.7%.
The Zacks Consensus Estimate for XEL’s fourth-quarter earnings per share is 67 cents, suggesting growth of 15.5% from the year-ago quarter’s actuals.
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Eversource Energy (ES) Q3 Earnings Lag Estimates, Sales Beat
Eversource Energy (ES - Free Report) reported third-quarter 2022 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.03 by 1.9%. The earnings dropped nearly 1% year over year.
GAAP earnings per share for the third quarter were $1, up 21.9% from 82 cents reported in the year-ago period. The difference between GAAP and operating earnings per share was due to one-time tax charges.
Revenues
Third-quarter revenues of $3,215.6 million surpassed the Zacks Consensus Estimate of $2,716 million by 18.4%. Total revenues improved 32.2% from the year-ago figure of $2,432.8 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 36.4% year over year to $2,658.4 million due to a rise in Purchased Power, Fuel and Transmission expenses and an increase in operating and maintenance expenses.
Operating income was up 15.3% from the prior-year quarter at $557.3 million. Interest expenses increased 20.5% from the prior-year quarter to $178.2 million.
Net income for the quarter under review was $351.3 million, up 23.3% from $285 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment were $155.8 million, up 11.8% 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 $225.1 million, up 5.4% from the prior-year quarter. The improvement primarily resulted from higher revenues and lower pension-related costs.
Natural Gas Distribution: Losses from this segment for the third quarter were $24.6 million, wider than the prior-year period’s loss of $22 million. The weak performance was due to higher non-tracked O&M, property taxes, depreciation and interest expenses, partially offset by higher revenues and lower pension expenses.
Water Distribution: Earnings from this segment were $16.7 million, down from $17.5 million in the year-ago quarter. The year-over-year decline was due to higher operating and maintenance expenses driven by the increased cost of water treatment chemicals.
Eversource Parent & Other Companies: The segment lost $21.4 million against earnings of $2.2 million in the year-ago quarter.
Guidance
Eversource Energy reaffirmed its 2022 earnings guidance of $4.04-$4.14 per share, excluding transaction and transition charges. The mid-point of 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.
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 third-quarter 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 79 cents by 7.6%.
The Zacks Consensus Estimate for NEE’s fourth-quarter earnings per share is 56 cents, implying growth of 36.6% from the year-ago quarter’s reported number.
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating earnings per share (EPS) of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%.
The Zacks Consensus Estimate for FE’s fourth-quarter earnings per share is 53 cents, indicating growth of 3.92% from the year-ago quarter’s reported figure.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2022 operating earnings of $1.18 per share, lagging the Zacks Consensus Estimate by 1.7%.
The Zacks Consensus Estimate for XEL’s fourth-quarter earnings per share is 67 cents, suggesting growth of 15.5% from the year-ago quarter’s actuals.