Back to top

Image: Bigstock

Eversource Energy (ES) to Report Q4 Earnings: What to Expect

Read MoreHide Full Article

Eversource Energy (ES - Free Report) is scheduled to release fourth-quarter 2022 financial results on Feb 14, before market open. The company delivered a negative earnings surprise of 1.94% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

Eversource Energy’s fourth-quarter results are expected to benefit from new rates becoming effective during the quarter, which might have boosted its earnings.

Eversource Energy’s fourth-quarter earnings are likely to have gained from acquisition of The Torrington Water Company, that has expanded its water business and added new customers, thus boosting demand for water services.

However, Eversource Energy’s fourth-quarter earnings are likely to have been adversely impacted by higher operation and maintenance expenses.

Expectations

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 95 cents per share, indicating a year-over-year decline of 4.4%.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.67 billion, implying a year-over-year decline of 7.4%.

Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Eversource Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
 

Eversource Energy Price and EPS Surprise

Eversource Energy Price and EPS Surprise

Eversource Energy price-eps-surprise | Eversource Energy Quote

Earnings ESP: The company’s Earnings ESP is -0.53%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Eversource Energy carries a Zacks Rank #4.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to post an earnings beat for the to-be-reported quarter.

Entergy (ETR - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Feb 16, 2023, before market open. It has an Earnings ESP of +3.30% and a Zacks Rank #3, at present.

Entergy’s long-term (three to five years) earnings growth is pegged at 6%. The Zacks Consensus Estimate for 2023 earnings per share (EPS) is $6.68, implying a year-over-year increase of 4.7%.

Public Service Enterprise Group (PEG - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Feb 21, 2023, before market open. It has an Earnings ESP of +3.72% and a Zacks Rank #3, at present.

Public Service Enterprise Group’s long-term earnings growth is pegged at 2.36%. Its current dividend yield is 3.53% compared with Zacks S&P 500 composite's average of 1.51%.

TransAlta (TAC - Free Report) is likely to come up with an earnings beat when it reports its fourth-quarter results on Feb 23, 2023, before market open. It has an Earnings ESP of +25.95% and currently sports a Zacks Rank #1.

The Zacks Consensus Estimate for 2023 earnings per share is 93 cents, indicating a year-over-year increase of 41.16%. TransAlta’ current dividend yield is 1.8% compared with Zacks S&P 500 composite's average of 1.51%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

Published in