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Eversource Energy (ES) Q1 Earnings & Sales Beat Estimates

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Eversource Energy (ES - Free Report) reported first-quarter 2023 operating earnings of $1.41 per share, which surpassed the Zacks Consensus Estimate of $1.36 by 3.7%, increasing 8.5% year over year.

Revenues

First-quarter revenues of $3,795.6 million surpassed the Zacks Consensus Estimate of $3,714 million by 2.2%. Total revenues improved 9.4% from the year-ago figure of $3,471.3 million.

Eversource Energy Price, Consensus and EPS Surprise

 

Eversource Energy Price, Consensus and EPS Surprise

Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote

 

Highlights of the Release

Operating expenses increased 8.5% year over year to $3,046.1 million due to a rise in Purchased Power, Fuel and Transmission expenses and higher spending on energy efficiency programs.

Operating income was up 13.1% from the prior-year quarter at $749.6 million. Interest expenses increased 26.9% from the prior-year quarter to $194.6 million.

Net income for the quarter under review was $493.1 million, up 10.7% from $445.3 million recorded in the year-ago period.

Segmental Performance

Electric Transmission: Earnings from this segment were $155.1 million, up 4.5% from the prior-year quarter. The increase primarily resulted from a higher level of investment in Eversource’s electric transmission system.

Electric Distribution: Earnings from this segment were $165.5 million, up 17.5% from the prior-year quarter. The improved first-quarter results were due to higher revenues and the aforementioned seasonal rate design changes at NSTAR Electric Company.

Natural Gas Distribution: Earnings from this segment for the first quarter were $170.3 million, up 3.8% from the year-ago quarter on higher revenues due to rate adjustments in late 2022.

Water Distribution: Earnings from this segment were $1.5 million, down from $3.7 million in the year-ago quarter. The year-over-year decline was due to higher operational and maintenance expenses.

Eversource Parent & Other Companies: The segment lost $1.2 million, narrower than $13.7 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 $4.36 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 #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) released first-quarter 2023 adjusted earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 12%.

The Zacks Consensus Estimate for NEE’s 2023 earnings per share is $3.11, implying year-over-year growth of 7.3%.

Entergy Corporation (ETR - Free Report) reported first-quarter 2023 earnings of $1.14 per share, missing the Zacks Consensus Estimate of $1.34 by 14.9%.

The Zacks Consensus Estimate for ETR’s 2023 earnings per share is $6.69, implying a year-over-year increase of 4.2%.

ONE Gas Inc. (OGS - Free Report) reported first-quarter 2023 operating earnings of $1.84 per share, which missed the Zacks Consensus Estimate of $1.85 by 0.54%.

The Zacks Consensus Estimate for OGS’s 2023 earnings per share is $4.14, suggesting year-over-year growth of 1.47%

 

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