Eversource Energy (ES - Free Report) delivered second-quarter 2018 operating earnings of 76 cents per share, surpassing the Zacks Consensus Estimate of 75 cents by 1.3%. The bottom line also improved 5.6% year over year.
Eversource’s second-quarter revenues of $1,854 million topped the Zacks Consensus Estimate of $1,813 million by 2.3% and also improved 5.2% from the year-ago figure of $1,763 million.
Highlights of the Release
In the reported quarter, natural gas distribution increased 11.3% to 18,932 million cubic feet of gas.
Operating expenses increased nearly 11.3% year over year to $1,462.5 million, primarily owing to higher expenses from purchased power, fuel and transmission plus depreciation expenses.
Operating income was down 12.7% to $391.4 million and interest expenses were up 17.8% year over year to $126.4 million.
Net income in the quarter under review was $244.7 million, up 5.2% from the year-ago period’s tally.
Electric Distribution: Earnings from this segment were down 16.9% to $101.3 million. This downside was on account of divestiture of New Hampshire generation assets, higher property tax expense and the timing of electric revenues.
Electric Transmission: This segmental bottom line increased 16.9% year over year to $112.7 million. The upside was primarily attributable to higher level of investment in Eversource’s electric transmission system.
Natural Gas Distribution: Here, the earnings improved 11.1% to $5 million. The year-over-year rise was primarily due to cold weather in 2018.
Water Distribution: Eversource Energy’s water distribution segment, created after Eversource acquired Aquarion Water Company in December 2017, earned $7.2 million in second-quarter 2018.
Eversource Parent & Other Companies: The segment earned $16.6 million compared with the year-ago quarter’s bottom lines of $7.9 million.
Eversource reaffirmed 2018 earnings guidance in the range of $3.20-$3.30. Long-term earnings growth is projected in the 5-7% band.
Eversource Energy Price, Consensus and EPS Surprise