Back to top

Image: Bigstock

Eversource Energy (ES) to Report Q1 Earnings: What's in Store?

Read MoreHide Full Article

Eversource Energy (ES - Free Report) is scheduled to release first-quarter 2024 results on May 1, after market close. The company delivered a negative earnings surprise of 2.1% in the last reported quarter.

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

Factors to Consider

Per the 2022 NSTAR Electric rate review, the first base distribution revenue increase of the performance-based rate plan, totaling $105 million, was effective from Jan 1, 2024. This is likely to have had a favorable impact on earnings.

Eversource Energy’s first-quarter earnings are expected to have gained from increased investments in electric distribution and transmission and natural gas distribution, which have enhanced service reliability. Lower operation and maintenance expenses and lower effective tax rate are likely to have had a positive impact on earnings.

However, higher depreciation and property taxes from increased investment and higher interest expense are likely to have adversely impacted Eversource Energy’s performance in the to-be-reported quarter.

Q1 Expectations

The Zacks Consensus Estimate for earnings is pegged at $1.45 per share, indicating a year-over-year increase of 2.8%.

The Zacks Consensus Estimate for revenues is pinned at $4.14 billion, implying a year-over-year improvement of 9.1%.

What Our Quantitative Model Predicts

Our proven model predicts 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, which is 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 +2.76%. 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 #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are a few other promising players from the same industry that also have the right combination of elements to come up with an earnings beat this reporting cycle.

CenterPoint Energy (CNP - Free Report) is likely to come up with an earnings beat when it reports first-quarter earnings on Apr 30. It has an Earnings ESP of +3.92% and a Zacks Rank #3 at present.

CNP’s long-term (three to five years) earnings growth rate is 7%. The Zacks Consensus Estimate for first-quarter 2024 earnings has decreased 3.8% in the past 30 days.

Ameren Corporation (AEE - Free Report) is likely to come up with an earnings beat when it reports first-quarter earnings on May 2. It has an Earnings ESP of +0.30% and a Zacks Rank #3 at present.

AEE’s long-term earnings growth rate is 6.5%. The Zacks Consensus Estimate for first-quarter 2024 earnings has decreased 0.9% in the past 60 days.

NiSource (NI - Free Report) is likely to come up with an earnings beat when it reports first-quarter 2024 earnings on May 8. It has an Earnings ESP of +1.24% and a Zacks Rank #3 at present.

NI’s long-term earnings growth rate is 6%. The Zacks Consensus Estimate for first-quarter 2024 earnings has increased 1.3% in the past 60 days.

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

 

Published in