Eversource Energy (ES - Free Report) reported second-quarter 2017 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 68 cents by 5.8%. The quarterly earnings were also up 12.5% from the year-ago quarter figure of 64 cents.
The year-over-year increase in earnings can be attributed to higher level of investment in Eversource’s transmission system.
Eversource’s second-quarter revenues of $1,762.8 million missed the Zacks Consensus Estimate of $1,800 million by 2.1% and decreased 0.2% from the year-ago figure of $1,767.2 million.
Highlights of the Release
In the reported quarter, total electric distribution decreased 1.9% year over year to 12,164 Gigawatt hours, and natural gas distribution decreased 4.6% to 17,016 million cubic feet of gas.
Operating expenses decreased nearly 2.7% year over year to $1,307.1 million, primarily due to lower expenses incurred for purchased power, fuel and transmission as well as operations and maintenance activities.
Operating income was up 7.6% to $455.7 million from $423.4 million a year ago.
In the reported quarter, interest expense was $107.3 million, up 6.8% year over year.
Net income in the reported quarter was $230.7 million, up 13.3% year over year.
Eversource Energy Price, Consensus and EPS Surprise
Electric Distribution and Generation: Segment earnings were up 18.6% to $121.9 million primarily due to lower operation and maintenance expenses along with higher distribution revenues.
Electric Transmission: Segment earnings advanced 4.2% to $96.4 million backed by increased level of investment in company’s transmission system.
Natural Gas Distribution: Segment earnings were $4.5 million compared with $8.0 million in the year-ago quarter. Lower sales were a result of milder early spring temperatures in 2017, higher depreciation, and operation and maintenance expense.
Eversource Parent & Other Companies: The segment earned $7.9 million, much higher than the year-ago earnings of $0.3 million. Improved results were a result of gains related to company’s investment in certain renewable energy facilities.
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%.
Eversource currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here..
Other Utility Releases
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 operating earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.68%.
DTE Energy Company (DTE - Free Report) reported second-quarter 2017 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate of 99 cents by 8.08%.
WEC Energy Group, Inc. (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, compared to the Zacks Consensus Estimate of 59 cents by 6.78%.
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