Back to top

Image: Bigstock

Eversource (ES) Q4 Earnings and Revenues Miss Estimates

Read MoreHide Full Article

Eversource Energy (ES - Free Report) reported fourth-quarter 2019 operating earnings of 76 cents per share, lagging the Zacks Consensus Estimate of 78 cents by 2.6%. However, the reported earnings improved 4.1% year over year.
 
Total Revenues

Fourth-quarter revenues of $2,050.4 million lagged the Zacks Consensus Estimate of $2,231 million by 8.1%. However, total revenues improved 0.8% from the year-ago figure of $2,034.9 million.

Highlights of the Release

Operating expenses decreased 1.2% year over year to $1,614.8 million, primarily owing to lower amortization costs.

Operating income was up 8.9% from the prior-year quarter to $435.6 million. Interest expenses increased 5.9% year over year to $133.6 million in the quarter.

Net income in the quarter under review was $250.1 million, up 8.1% from $231.3 million recorded in the year-ago period.

Eversource Energy Price, Consensus and EPS Surprise
 

Eversource Energy Price, Consensus and EPS Surprise

Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote

Segmental Performance

Electric Distribution & Generation: Earnings from this segment were $90.7 million, up 19% from the prior-year quarter. The upside was primarily attributable to higher distribution revenues, partially offset by increased depreciation cost, and operations and maintenance (O&M) expense.

Electric Transmission: Earnings of the segment were up 21.1% year over year to $118.1 million. The upside was due to increased investment in Eversource Energy’s transmission facilities.

Natural Gas Distribution: This segment’s earnings were down 10.2% year over year to $38.6 million. The segment’s weak results were due to higher O&M and depreciation expenses.

Water Distribution: Earnings from this segment were $8.5 million compared with $4.5 million in the year-ago quarter.

Eversource Parent & Other Companies: The segment’s loss was $5.9 million against earnings of $10.1 million in the year-ago quarter. The weak results were due to higher effective tax rate.

Guidance

Eversource provided its 2020 earnings guidance in the range of $3.60-$3.70 per share. The midpoint of management’s 2020 EPS guidance is $3.65, which is higher than the current Zacks Consensus Estimate of $3.63 for the period.

The company expects earnings to improve 5-7% through 2024 from the 2019 base of $3.45.

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.

Other Releases

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, lagging the Zacks Consensus Estimate of $1.54 by 6.5%.

Exelon Corporation’s (EXC - Free Report) fourth-quarter 2019 operating earnings of 83 cents per share surpassed the Zacks Consensus Estimate of 73 cents by 13.6%.

Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2019 operating earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.16 by 1.7%.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>