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Eversource Energy (ES) Q1 Earnings Beat, Sales Lag Estimates
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Eversource Energy (ES - Free Report) reported first-quarter 2024 adjusted earnings of $1.49 per share, which surpassed the Zacks Consensus Estimate of $1.45 by 2.8%. The bottom line increased 5.7% from the year-ago quarter’s figure of $1.41.
The uptick was driven by a higher level of investment in ES’ electric transmission system. This was needed for addressing system capacity growth and delivering clean energy resources for the region. New electric and natural gas distribution rates also contributed toward strong bottom-line performance in the quarter under review.
Total Revenues
ES’ revenues of $3.33 billion missed the Zacks Consensus Estimate of $4.14 billion by 19.5%. Total revenues also declined 12.2% from the year-ago quarter’s figure of $3.79 billion.
Eversource Energy Price, Consensus and EPS Surprise
Total operating expenses were $2.48 billion, down 18.4% year over year. This was caused by lower purchased power, purchased natural gas and transmission expenses compared with the prior-year quarter.
Interest income was $845.9 million, up 12.9% year over year.
Interest expenses were $250.8 million, 28.9% higher year over year.
Segmental Performance
Electric Transmission: Earnings totaled $176.7 million, up 13.9% year over year.
Electric Distribution: Earnings amounted to $168.1 million, up 1.6% year over year. This was due to higher revenues from investments in the distribution system and a base distribution rate increase for the company’s Massachusetts electric business.
Natural Gas Distribution: Earnings totaled $190.6 million, up 11.9% year over year. Higher revenues associated with investments in its natural gas infrastructure and a base distribution rate increase at NSTAR Gas resulted in this upside.
Water Distribution: Earnings amounted to $5.4 million, increasing 260% year over year. The improvement was on the back of contribution from acquired assets and lower depreciation expenses.
Eversource Parent & Other Companies: The segment reported quarterly loss of $19 million, wider than the year-ago quarter's loss of $1.2 million. This decline was caused by higher interest expenses marginally offset by a lower effective tax rate.
Guidance
Eversource Energy reaffirmed its 2024 earnings in the band of $4.50-$4.67 per share. The Zacks Consensus Estimate is pegged at $4.51, lower than $4.58, the midpoint of the company’s guided range.
The company’s expects long-term EPS growth rate from existing core regulated businesses to be between 5% and 7% through 2028, using $4.34 per share earned in 2023 as a base.
It plans to invest $23.1 billion during 2024-2028, out of which nearly $16.1 billion will be invested in electric and natural gas distribution networks, and $7.2 billion in the electric transmission segment.
NRG Energy Inc. (NRG - Free Report) will report first-quarter 2024 results on May 7, before market open. The Zacks Consensus Estimate for earnings per share (EPS) is pegged at 51 cents, indicating a decline of 40.7% from the year-ago levels.
The Zacks Consensus Estimate for NRG’s 2024 EPS is pegged at $5.36, implying an increase of 24.07% from the prior-year actuals.
NiSource Inc. (NI - Free Report) is set to report first-quarter 2024 results on May 8, before market open. The Zacks Consensus Estimate for EPS is pegged at 861, suggesting an increase of 5.19% from a year ago.
The Zacks Consensus Estimate for NI’s 2024 EPS is pegged at $1.71, calling for a rise of 6.88% from the year-earlier figures.
Constellation Energy (CEG - Free Report) is slated to report first-quarter 2024 results on May 9, before market open. The Zacks Consensus Estimate for EPS is pegged at $1.99, calling for a year-over-year increase of 586.2%.
The Zacks Consensus Estimate for CEG’s 2024 EPS is pegged at $7.43, suggesting a decline of 48.3% from the prior-year numbers.
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Eversource Energy (ES) Q1 Earnings Beat, Sales Lag Estimates
Eversource Energy (ES - Free Report) reported first-quarter 2024 adjusted earnings of $1.49 per share, which surpassed the Zacks Consensus Estimate of $1.45 by 2.8%. The bottom line increased 5.7% from the year-ago quarter’s figure of $1.41.
The uptick was driven by a higher level of investment in ES’ electric transmission system. This was needed for addressing system capacity growth and delivering clean energy resources for the region. New electric and natural gas distribution rates also contributed toward strong bottom-line performance in the quarter under review.
Total Revenues
ES’ revenues of $3.33 billion missed the Zacks Consensus Estimate of $4.14 billion by 19.5%. Total revenues also declined 12.2% from the year-ago quarter’s figure of $3.79 billion.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote
Highlights of the Release
Total operating expenses were $2.48 billion, down 18.4% year over year. This was caused by lower purchased power, purchased natural gas and transmission expenses compared with the prior-year quarter.
Interest income was $845.9 million, up 12.9% year over year.
Interest expenses were $250.8 million, 28.9% higher year over year.
Segmental Performance
Electric Transmission: Earnings totaled $176.7 million, up 13.9% year over year.
Electric Distribution: Earnings amounted to $168.1 million, up 1.6% year over year. This was due to higher revenues from investments in the distribution system and a base distribution rate increase for the company’s Massachusetts electric business.
Natural Gas Distribution: Earnings totaled $190.6 million, up 11.9% year over year. Higher revenues associated with investments in its natural gas infrastructure and a base distribution rate increase at NSTAR Gas resulted in this upside.
Water Distribution: Earnings amounted to $5.4 million, increasing 260% year over year. The improvement was on the back of contribution from acquired assets and lower depreciation expenses.
Eversource Parent & Other Companies: The segment reported quarterly loss of $19 million, wider than the year-ago quarter's loss of $1.2 million. This decline was caused by higher interest expenses marginally offset by a lower effective tax rate.
Guidance
Eversource Energy reaffirmed its 2024 earnings in the band of $4.50-$4.67 per share. The Zacks Consensus Estimate is pegged at $4.51, lower than $4.58, the midpoint of the company’s guided range.
The company’s expects long-term EPS growth rate from existing core regulated businesses to be between 5% and 7% through 2028, using $4.34 per share earned in 2023 as a base.
It plans to invest $23.1 billion during 2024-2028, out of which nearly $16.1 billion will be invested in electric and natural gas distribution networks, and $7.2 billion in the electric transmission segment.
Zacks Rank
Eversource Energy currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
NRG Energy Inc. (NRG - Free Report) will report first-quarter 2024 results on May 7, before market open. The Zacks Consensus Estimate for earnings per share (EPS) is pegged at 51 cents, indicating a decline of 40.7% from the year-ago levels.
The Zacks Consensus Estimate for NRG’s 2024 EPS is pegged at $5.36, implying an increase of 24.07% from the prior-year actuals.
NiSource Inc. (NI - Free Report) is set to report first-quarter 2024 results on May 8, before market open. The Zacks Consensus Estimate for EPS is pegged at 861, suggesting an increase of 5.19% from a year ago.
The Zacks Consensus Estimate for NI’s 2024 EPS is pegged at $1.71, calling for a rise of 6.88% from the year-earlier figures.
Constellation Energy (CEG - Free Report) is slated to report first-quarter 2024 results on May 9, before market open. The Zacks Consensus Estimate for EPS is pegged at $1.99, calling for a year-over-year increase of 586.2%.
The Zacks Consensus Estimate for CEG’s 2024 EPS is pegged at $7.43, suggesting a decline of 48.3% from the prior-year numbers.