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Eversource Energy (ES) Q4 Earnings and Revenues Lag Estimates
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Eversource Energy (ES - Free Report) reported fourth-quarter 2023 adjusted earnings of 95 cents per share, which missed the Zacks Consensus Estimate of 97 cents by 2.1%. However, the bottom line increased 24% from the year-ago quarter’s figure of 92 cents.
ES reported earnings of $4.34 for 2023 compared with $4.09 per share in 2022, which reflects a year-over-year increase of 6.1%.
Total Revenues
ES’ fourth-quarter revenues of $2.69 billion missed the Zacks Consensus Estimate of $3.15 billion by 16.3%. Total revenues also declined 13.2% from the year-ago quarter’s figure of $3.03 billion.
Eversource Energy Price, Consensus and EPS Surprise
After selling South Fork Wind and Revolution Wind to Global Infrastructure Partners, Sunrise Wind to orsted and the uncommitted lease area last year, Eversource's offshore wind business can now be fully exited. Eversource will maintain its existing tax equity stake in South Fork Wind.
Segmental Performance
Electric Transmission: Earnings from this segment totaled $167 million, up 18.6% from the prior-year quarter’s level. The increase was primarily due to a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment amounted to $103.7 million, up 5.9% year over year. This was due to higher revenues from investments in the distribution system and a base distribution rate increase for Eversource’s Massachusetts electric business.
Natural Gas Distribution: Earnings from this segment totaled $76.5 million, down 12.2% from the prior-year quarter’s level. This was due to higher depreciation and operation and maintenance expenses.
Water Distribution: Earnings from this segment amounted to $5.7 million, down 23% from the year-ago quarter’s figure.
Eversource Parent & Other Companies: The segment reported a loss of $19.4 million in the fourth quarter of 2023, marking an improvement from the year-ago quarter's reported loss of $12.9 million. This primarily reflects a lower effective tax rate, partially offset by higher interest expenses.
Guidance
Eversource expects its 2024 earnings in the band of $4.50-$4.67 per share. The Zacks Consensus Estimate is pegged at $4.51 per share, lower than $4.58, the midpoint of the company’s guided range.
The company’s expectations for the long-term EPS growth rate from existing core regulated businesses are within 5% and 7% through 2028, using the $4.34 per share earned in 2023 as a base.
Zacks Rank
Eversource currently carries a Zacks Rank #4 (Sell).
Avangrid (AGR - Free Report) will report fourth-quarter 2023 results on Feb 21 after market close. The Zacks Consensus Estimate for earnings is pegged at 94 cents per share, indicating a year-over-year decline of 143.03%.
The Zacks Consensus Estimate for AGR’s 2024 earnings is pegged at $2.25 per share, implying a year-over-year increase of 9.33%.
Ameren (AEE - Free Report) to report fourth-quarter 2023 results on Feb 22 after market close. The Zacks Consensus Estimate for earnings is pegged at 61 cents per share, suggesting a year-over-year decline of 3.17%.
The Zacks Consensus Estimate for AEE’s 2024 earnings is pegged at $4.60 per share, calling for a year-over-year increase of 4.82%.
Vistra Energy Corp. (VST - Free Report) to report fourth-quarter 2023 results on Feb 28 before market open. The Zacks Consensus Estimate for earnings is pegged at 41 cents per share, calling for a year-over-year increase of 160.29%.
The Zacks Consensus Estimate for VST’s 2024 earnings is pegged at $4.55 per share, suggesting a year-over-year decline of 19.29%.
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Eversource Energy (ES) Q4 Earnings and Revenues Lag Estimates
Eversource Energy (ES - Free Report) reported fourth-quarter 2023 adjusted earnings of 95 cents per share, which missed the Zacks Consensus Estimate of 97 cents by 2.1%. However, the bottom line increased 24% from the year-ago quarter’s figure of 92 cents.
ES reported earnings of $4.34 for 2023 compared with $4.09 per share in 2022, which reflects a year-over-year increase of 6.1%.
Total Revenues
ES’ fourth-quarter revenues of $2.69 billion missed the Zacks Consensus Estimate of $3.15 billion by 16.3%. Total revenues also declined 13.2% from the year-ago quarter’s figure of $3.03 billion.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote
Highlights of the Release
After selling South Fork Wind and Revolution Wind to Global Infrastructure Partners, Sunrise Wind to orsted and the uncommitted lease area last year, Eversource's offshore wind business can now be fully exited. Eversource will maintain its existing tax equity stake in South Fork Wind.
Segmental Performance
Electric Transmission: Earnings from this segment totaled $167 million, up 18.6% from the prior-year quarter’s level. The increase was primarily due to a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment amounted to $103.7 million, up 5.9% year over year. This was due to higher revenues from investments in the distribution system and a base distribution rate increase for Eversource’s Massachusetts electric business.
Natural Gas Distribution: Earnings from this segment totaled $76.5 million, down 12.2% from the prior-year quarter’s level. This was due to higher depreciation and operation and maintenance expenses.
Water Distribution: Earnings from this segment amounted to $5.7 million, down 23% from the year-ago quarter’s figure.
Eversource Parent & Other Companies: The segment reported a loss of $19.4 million in the fourth quarter of 2023, marking an improvement from the year-ago quarter's reported loss of $12.9 million. This primarily reflects a lower effective tax rate, partially offset by higher interest expenses.
Guidance
Eversource expects its 2024 earnings in the band of $4.50-$4.67 per share. The Zacks Consensus Estimate is pegged at $4.51 per share, lower than $4.58, the midpoint of the company’s guided range.
The company’s expectations for the long-term EPS growth rate from existing core regulated businesses are within 5% and 7% through 2028, using the $4.34 per share earned in 2023 as a base.
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.
Upcoming Releases
Avangrid (AGR - Free Report) will report fourth-quarter 2023 results on Feb 21 after market close. The Zacks Consensus Estimate for earnings is pegged at 94 cents per share, indicating a year-over-year decline of 143.03%.
The Zacks Consensus Estimate for AGR’s 2024 earnings is pegged at $2.25 per share, implying a year-over-year increase of 9.33%.
Ameren (AEE - Free Report) to report fourth-quarter 2023 results on Feb 22 after market close. The Zacks Consensus Estimate for earnings is pegged at 61 cents per share, suggesting a year-over-year decline of 3.17%.
The Zacks Consensus Estimate for AEE’s 2024 earnings is pegged at $4.60 per share, calling for a year-over-year increase of 4.82%.
Vistra Energy Corp. (VST - Free Report) to report fourth-quarter 2023 results on Feb 28 before market open. The Zacks Consensus Estimate for earnings is pegged at 41 cents per share, calling for a year-over-year increase of 160.29%.
The Zacks Consensus Estimate for VST’s 2024 earnings is pegged at $4.55 per share, suggesting a year-over-year decline of 19.29%.