We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eversource Energy (ES) Hit by Regulatory and Weather Woes
Read MoreHide Full Article
Eversource Energy (ES - Free Report) is subject to stringent environmental regulations and inconsistent weather, which are hurting its performance. Given that the company depends on the performance of third parties, substandard performance from them adversely impacts results of Eversource Energy.
However, the company’s planned organic growth investment could help it in overcoming the challenges.
What Lies Ahead?
Eversource Energy’s first-quarter earnings of 82 cents per share lagged the Zacks Consensus Estimate by a penny. However, quarterly earnings were up 6.5% from the year-ago quarter figure of 77 cents. Earnings improved year over year due to higher transmission, and electric and natural gas revenues compared with the previous-year quarter.
Eversource Energy’s operations are subject to federal, state and local legislative requirements, as well as extensive environmental regulations, relating to emission of greenhouse gases and carbon dioxide, air and water pollution, and waste management. Any modification in existing regulations and introduction of new mandates could impact the financial performance of the company.
Milder weather conditions in first-quarter 2017 affected demand for natural gas in the company’s service territories.
However, Eversource relies on organic growth to expand its operations. It is currently focusing on upgrading its distribution and utility transmission infrastructure. The company has plans of investing $9.6 billion in the 2017 to 2020 time period. These regulated investments will help the company in boosting its earnings per share by 5–7% during the 2017–2020 period from the 2016 level of $2.96.
The company has been able to manage its expenditure efficiently. It achieved an overall average O&M expense reduction of 4–5% in the last four years, exceeding its cost-reduction goal of 3–4% in a year. These cost-reduction initiatives will boost margins. The company will carry on with these initiatives in 2017 as well.
Price Movement
In the last one month, shares of Eversource Energy have lost 0.8% compared with the Zacks categorized Utility - Electric Power industry’s loss of 0.7%.
Its peers like Pampa Energia S.A. (PAM - Free Report) and Algonquin Power & Utilities Corp. (AQN - Free Report) have gained 2.6% and 2%, respectively.
CenterPoint Energy, Inc. reported a positive earnings surprise of 2.78% in the first quarter. Its 2017 Zacks Consensus Estimate has moved up nearly 5.3% to 20 cents per share in the last 60 days.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
Image: Bigstock
Eversource Energy (ES) Hit by Regulatory and Weather Woes
Eversource Energy (ES - Free Report) is subject to stringent environmental regulations and inconsistent weather, which are hurting its performance. Given that the company depends on the performance of third parties, substandard performance from them adversely impacts results of Eversource Energy.
However, the company’s planned organic growth investment could help it in overcoming the challenges.
What Lies Ahead?
Eversource Energy’s first-quarter earnings of 82 cents per share lagged the Zacks Consensus Estimate by a penny. However, quarterly earnings were up 6.5% from the year-ago quarter figure of 77 cents. Earnings improved year over year due to higher transmission, and electric and natural gas revenues compared with the previous-year quarter.
Eversource Energy’s operations are subject to federal, state and local legislative requirements, as well as extensive environmental regulations, relating to emission of greenhouse gases and carbon dioxide, air and water pollution, and waste management. Any modification in existing regulations and introduction of new mandates could impact the financial performance of the company.
Milder weather conditions in first-quarter 2017 affected demand for natural gas in the company’s service territories.
However, Eversource relies on organic growth to expand its operations. It is currently focusing on upgrading its distribution and utility transmission infrastructure. The company has plans of investing $9.6 billion in the 2017 to 2020 time period. These regulated investments will help the company in boosting its earnings per share by 5–7% during the 2017–2020 period from the 2016 level of $2.96.
The company has been able to manage its expenditure efficiently. It achieved an overall average O&M expense reduction of 4–5% in the last four years, exceeding its cost-reduction goal of 3–4% in a year. These cost-reduction initiatives will boost margins. The company will carry on with these initiatives in 2017 as well.
Price Movement
In the last one month, shares of Eversource Energy have lost 0.8% compared with the Zacks categorized Utility - Electric Power industry’s loss of 0.7%.
Its peers like Pampa Energia S.A. (PAM - Free Report) and Algonquin Power & Utilities Corp. (AQN - Free Report) have gained 2.6% and 2%, respectively.
Zacks Rank and Better-Ranked Stocks
Eversource Energy currently has a Zacks Rank #4 (Sell). A better-ranked stock in the utility space is CenterPoint Energy, Inc. (CNP - Free Report) with a Zacks Rank 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CenterPoint Energy, Inc. reported a positive earnings surprise of 2.78% in the first quarter. Its 2017 Zacks Consensus Estimate has moved up nearly 5.3% to 20 cents per share in the last 60 days.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think. See This Ticker Free >>