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Eversource Energy (ES) Q4 Earnings Miss Estimates, Sales Beat
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Eversource Energy (ES - Free Report) reported fourth-quarter 2022 operating earnings of 92 cents per share, which lagged the Zacks Consensus Estimate of 94 cents by 2.1%, increasing 1.1% year over year.
In 2022, operating earnings per share were $4.09 compared with $3.86 per share in 2021. Eversource Energy’s 2022 earnings were within the guidance of $4.04-$4.14.
Revenues
Fourth-quarter revenues of $3,029.8 million surpassed the Zacks Consensus Estimate of $2,665 million by 13.7%. Total revenues improved 22.1% from the year-ago figure of $2,481.9 million.
Eversource Energy Price, Consensus and EPS Surprise
Operating expenses increased 24.8% year over year to $2,507.5 million due to a rise in Purchased Power, Fuel and Transmission expenses, an increase in operating and maintenance expenses, and higher spending on energy efficiency programs.
Operating income was up 10.5% from the prior-year quarter at $522.3 million. Interest expenses increased 23.5% from the prior-year quarter to $186.8 million.
Net income for the quarter under review was $322.1 million, up 4.4% from $308.6 million recorded in the year-ago period.
The company invested $3.8 billion in 2022 to strengthen its infrastructure.
Segmental Performance
Electric Transmission: Earnings from this segment were $140.7 million, up 6.4% 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 $97.9 million, down 6.8% from the prior-year quarter. The lower fourth-quarter results were due in part to a commitment to contribute $10 million to help Connecticut households address high energy prices this winter.
Natural Gas Distribution: Earnings from this segment for the fourth quarter were $87.1 million compared with $75.2 million in the year-ago quarter. The improvement was primarily due to higher revenues and lower pension expenses.
Water Distribution: Earnings from this segment were $7.4 million, up from $6.7 million in the year-ago quarter. The year-over-year decline was due to higher revenues and lower income tax expenses.
Eversource Parent & Other Companies: The segment lost $10.8 million, wider than $5.9 million loss in the year-ago quarter.
Guidance
Eversource Energy expects earnings of $4.25-$4.43 per share for 2023 . The mid-point of earnings guidance is $4.34, a tad lower than the Zacks Consensus Estimate of $4.37 for the year.
The company also reaffirmed its expectations for long-term earnings per share growth rate from the existing core regulated businesses in the upper half of 5-7% through 2027, using the $4.09 earned in 2022 as a base.
Eversource Energy plans to invest $4.46 billion in 2023. Its total capital expenditure for 2023-2027 is expected to be $21.5 billion.
Zacks Rank
Eversource currently carries a Zacks Rank #4 (Sell).
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%.
The Zacks Consensus Estimate for NEE’s 2023 earnings per share is $3.12, implying year-over-year growth of 7.6%.
Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2022 operating earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.03 per share by 2.9%.
The Zacks Consensus Estimate for Dominion’s 2023 earnings per share is $4.02, suggesting a year-over-year decline of 2.2%.
Exelon Corporation’s (EXC - Free Report) fourth-quarter 2022 earnings of 43 cents per share is in line with the Zacks Consensus Estimate.
The Zacks Consensus Estimate for Exelon’s 2023 earnings per share is $2.36, suggesting year-over-year growth of 4.1%.
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Eversource Energy (ES) Q4 Earnings Miss Estimates, Sales Beat
Eversource Energy (ES - Free Report) reported fourth-quarter 2022 operating earnings of 92 cents per share, which lagged the Zacks Consensus Estimate of 94 cents by 2.1%, increasing 1.1% year over year.
In 2022, operating earnings per share were $4.09 compared with $3.86 per share in 2021. Eversource Energy’s 2022 earnings were within the guidance of $4.04-$4.14.
Revenues
Fourth-quarter revenues of $3,029.8 million surpassed the Zacks Consensus Estimate of $2,665 million by 13.7%. Total revenues improved 22.1% from the year-ago figure of $2,481.9 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 24.8% year over year to $2,507.5 million due to a rise in Purchased Power, Fuel and Transmission expenses, an increase in operating and maintenance expenses, and higher spending on energy efficiency programs.
Operating income was up 10.5% from the prior-year quarter at $522.3 million. Interest expenses increased 23.5% from the prior-year quarter to $186.8 million.
Net income for the quarter under review was $322.1 million, up 4.4% from $308.6 million recorded in the year-ago period.
The company invested $3.8 billion in 2022 to strengthen its infrastructure.
Segmental Performance
Electric Transmission: Earnings from this segment were $140.7 million, up 6.4% 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 $97.9 million, down 6.8% from the prior-year quarter. The lower fourth-quarter results were due in part to a commitment to contribute $10 million to help Connecticut households address high energy prices this winter.
Natural Gas Distribution: Earnings from this segment for the fourth quarter were $87.1 million compared with $75.2 million in the year-ago quarter. The improvement was primarily due to higher revenues and lower pension expenses.
Water Distribution: Earnings from this segment were $7.4 million, up from $6.7 million in the year-ago quarter. The year-over-year decline was due to higher revenues and lower income tax expenses.
Eversource Parent & Other Companies: The segment lost $10.8 million, wider than $5.9 million loss in the year-ago quarter.
Guidance
Eversource Energy expects earnings of $4.25-$4.43 per share for 2023 . The mid-point of earnings guidance is $4.34, a tad lower than the Zacks Consensus Estimate of $4.37 for the year.
The company also reaffirmed its expectations for long-term earnings per share growth rate from the existing core regulated businesses in the upper half of 5-7% through 2027, using the $4.09 earned in 2022 as a base.
Eversource Energy plans to invest $4.46 billion in 2023. Its total capital expenditure for 2023-2027 is expected to be $21.5 billion.
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
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2022 adjusted earnings of 51 cents per share, which beat the Zacks Consensus Estimate of 50 cents by 2%.
The Zacks Consensus Estimate for NEE’s 2023 earnings per share is $3.12, implying year-over-year growth of 7.6%.
Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2022 operating earnings of $1.06 per share, which surpassed the Zacks Consensus Estimate of $1.03 per share by 2.9%.
The Zacks Consensus Estimate for Dominion’s 2023 earnings per share is $4.02, suggesting a year-over-year decline of 2.2%.
Exelon Corporation’s (EXC - Free Report) fourth-quarter 2022 earnings of 43 cents per share is in line with the Zacks Consensus Estimate.
The Zacks Consensus Estimate for Exelon’s 2023 earnings per share is $2.36, suggesting year-over-year growth of 4.1%.