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Eversource (ES) Q1 Earnings Meet Estimates, Revenues Rise

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Eversource Energy (ES - Free Report) reported first-quarter 2018 operating earnings of 85 cents per share, in line with the Zacks Consensus Estimate. Earnings improved 3.7% year over year.

Total Revenues

Eversource’s first-quarter revenues of $2,288 million surpassed the Zacks Consensus Estimate of $2,106 million by 8.6% and improved 8.7% from the year-ago figure of $2,105 million.

Eversource Energy Price, Consensus and EPS Surprise

 

Highlights of the Release

In the reported quarter, natural gas distribution increased 4.9% to 43,179 million cubic feet of gas.

Operating expenses increased nearly 15% year over year to $1,845.4 million, primarily owing to higher expenses from purchased power, fuel and transmission and depreciation expenses.

Operating income was down 11.7% to $442.5 million and interest expenses were up 17.1% year over year at $121.1 million.

Net income in the reported quarter was $271.4 million, up 3.9% from the year-ago quarter.

Segmental Performance

Electric Distribution: This segment’s earnings declined 8.7% year over year to $104.2 million. The decline was primarily on account of sale of generation assets, higher depreciation, property tax, operations and maintenance expense, which was partially offset by higher electric distribution margins.

Electric Transmission: The segment’s earnings were up 14% to $107.4 million. Higher transmission earnings were primarily due to Eversource’s additional investment in its electric transmission system.

Natural Gas Distribution: The segment’s earnings improved 13.8% to $57.8 million. The year-over-year increase was primarily due to strong sales, partially offset by higher operation and maintenance expenses.

Water Distribution: Eversource’s water distribution segment, which was created after it acquired Aquarion Water Company in December 2017, earned $1.5 million in the first quarter of 2018.

Eversource Parent & Other Companies: The segment incurred a loss of $1.4 million against the year-ago quarter’s earnings of $0.4 million.

Guidance

Eversource reaffirmed 2018 earnings guidance in the range of $3.20-$3.30. Long-term earnings growth is projected in the range of 5-7% for the long term.

Zacks Rank

Eversource currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Vistra Energy Corp. (VST - Free Report) is scheduled to report first-quarter 2018 results on May 4. The Zacks Consensus Estimate for the quarter is pegged at 6 cents.

Hawaiian Electric Industries, Inc. (HE - Free Report) is scheduled to report first-quarter 2018 results on May 4. The Zacks Consensus Estimate for the quarter is pegged at 41 cents.

Westar Energy, Inc. is scheduled to report first-quarter 2018 results on May 8. The Zacks Consensus Estimate for the quarter is pegged at 52 cents.

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