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Why Is Eversource Energy (ES) Up 4.8% Since the Last Earnings Report?
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A month has gone by since the last earnings report for Eversource Energy (ES - Free Report) . Shares have added about 4.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Eversource Energy reported first-quarter 2017 operating earnings of $0.82 per share, lagging the Zacks Consensus Estimate of $0.83 by a $0.01. However, the quarterly earnings were up 6.5% from the year-ago quarter figure of $0.77.
The year-over-year increase in earnings was due to higher transmission, electric and natural gas revenues compared with the previous-year quarter.
Total Revenue
Eversource’s first-quarter revenues of $2,105.1 million surpassed the Zacks Consensus Estimate of $2,099 million by 0.3% and improved 2.4% from the year-ago figure of $2,055.6 million.
Highlights of the Release
In the reported quarter, total electric distribution decreased 0.4% year over year to 13,172 Gigawatt hours, while natural gas distribution increased 4.6% to 41,146 million cubic feet of gas.
Operating expenses increased nearly 1.8% year over year to $1,596.2 million, primarily due to higher operation and maintenance expenses and higher expenditure on energy efficiency programs.
Operating income was up 4.2% to $509.1 million from $488.6 million a year ago.
In the reported quarter, interest expense was $103.4 million, up 5.3% year over year.
Net income in the reported quarter was $259.4 million, up 6.3% year over year.
Segmental Performance
Electric Distribution and Generation: Segment earnings were up 5.3% to $114.1 million primarily due to higher distribution revenues and lower property tax expense.
Electric Transmission: Segment earnings surged 9.9% to $94.2 million backed by higher earnings from transmission facilities.
Natural Gas Distribution: Segment earnings were $50.8 million compared with $50.9 million in the year ago quarter. Stronger sales in the reported quarter were offset by higher depreciation, property tax and interest expense.
Eversource Parent & Other Companies: The segment earned $0.4 million, while in the year-ago period it had incurred a loss of $0.8 million.
Guidance
Eversource reaffirmed 2017 earnings per share in the range of $3.05–$3.20. Long-term earnings growth is projected in the range of 5–7% through 2020, considering 2016 earnings as base.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter
At this time, the stock has a strong Growth Score of 'B', while Momentum is lagging a bit with a 'C'. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for growth investors while also being suitable for those looking for momentum and value.
Outlook
While estimates have been trending upward for the stock, the magnitude of this revision has been net zero. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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Why Is Eversource Energy (ES) Up 4.8% Since the Last Earnings Report?
A month has gone by since the last earnings report for Eversource Energy (ES - Free Report) . Shares have added about 4.8% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Eversource Q1 Earnings Miss, Revenues Beat Estimates
Eversource Energy reported first-quarter 2017 operating earnings of $0.82 per share, lagging the Zacks Consensus Estimate of $0.83 by a $0.01. However, the quarterly earnings were up 6.5% from the year-ago quarter figure of $0.77.
The year-over-year increase in earnings was due to higher transmission, electric and natural gas revenues compared with the previous-year quarter.
Total Revenue
Eversource’s first-quarter revenues of $2,105.1 million surpassed the Zacks Consensus Estimate of $2,099 million by 0.3% and improved 2.4% from the year-ago figure of $2,055.6 million.
Highlights of the Release
In the reported quarter, total electric distribution decreased 0.4% year over year to 13,172 Gigawatt hours, while natural gas distribution increased 4.6% to 41,146 million cubic feet of gas.
Operating expenses increased nearly 1.8% year over year to $1,596.2 million, primarily due to higher operation and maintenance expenses and higher expenditure on energy efficiency programs.
Operating income was up 4.2% to $509.1 million from $488.6 million a year ago.
In the reported quarter, interest expense was $103.4 million, up 5.3% year over year.
Net income in the reported quarter was $259.4 million, up 6.3% year over year.
Segmental Performance
Electric Distribution and Generation: Segment earnings were up 5.3% to $114.1 million primarily due to higher distribution revenues and lower property tax expense.
Electric Transmission: Segment earnings surged 9.9% to $94.2 million backed by higher earnings from transmission facilities.
Natural Gas Distribution: Segment earnings were $50.8 million compared with $50.9 million in the year ago quarter. Stronger sales in the reported quarter were offset by higher depreciation, property tax and interest expense.
Eversource Parent & Other Companies: The segment earned $0.4 million, while in the year-ago period it had incurred a loss of $0.8 million.
Guidance
Eversource reaffirmed 2017 earnings per share in the range of $3.05–$3.20. Long-term earnings growth is projected in the range of 5–7% through 2020, considering 2016 earnings as base.
How Have Estimates Been Moving Since Then?
Following the release, investors have witnessed an upward trend in fresh estimates. There has been one revision higher for the current quarter
Eversource Energy Price and Consensus
Eversource Energy Price and Consensus | Eversource Energy Quote
VGM Scores
At this time, the stock has a strong Growth Score of 'B', while Momentum is lagging a bit with a 'C'. However, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'B'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is primarily suitable for growth investors while also being suitable for those looking for momentum and value.
Outlook
While estimates have been trending upward for the stock, the magnitude of this revision has been net zero. Notably, the stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.