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Eversource (ES) Q1 Earnings In Line, Revenues Miss Estimates

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Eversource Energy (ES - Free Report) reported first-quarter 2020 operating earnings of $1.02 per share, on par with the Zacks Consensus Estimate. However, the reported earnings improved 4.9% year over year.
 
Total Revenues

First-quarter revenues of $2,374 million lagged the Zacks Consensus Estimate of $2,538 million by 6.5%. Total revenues also dropped 1.7% from the year-ago figure of $2,415.8 million.

Highlights of the Release

Operating expenses decreased 4.5% year over year to $1,834.6 million, primarily owing to lower purchased power, fuel and transmission expenses.

Operating income was up 8.9% from the prior-year quarter to $539.1 million. Interest expenses increased 2.3% year over year to $134.7 million in the quarter.

Net income in the quarter under review was $334.8 million, up 8.5% from $308.7 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: Earnings from this segment were $130.1 million, up 8.3% from the prior-year quarter. The upside was primarily attributed to higher distribution revenues and lower storm restoration costs, partially offset by increased depreciation cost, and operations and maintenance (O&M) expense.

Electric Transmission: Earnings of the segment were up 7.3% year over year to $126.8 million. The upside was due to increased investment in Eversource’s transmission facilities.

Natural Gas Distribution: This segment’s earnings were up 10.3% year over year to $84.4 million, partially offset by increase in O&M and depreciation expenses.

Water Distribution: Earnings from this segment were $2.1 million, up 133.3% from $0.9 million in the year-ago quarter.

Eversource Parent & Other Companies: The segment’s loss was $5 million compared with a loss of $7 million in the year-ago quarter. The narrower loss was due to lower interest expenses.

Financial Highlights

Cash and cash equivalents were $47.4 million as of Mar 31, 2020, up from $15.4 million on Dec 31, 2019.

Long-term debt was $13,898.6 million as of Mar 31, 2020, higher than $13,770.8 million on Dec 31, 2019.

Guidance

Eversource reaffirmed 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 on par with the current Zacks Consensus Estimate of $3.65 for the period.

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

Zacks Rank

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 Releases

Xcel Energy Inc. (XEL - Free Report) posted first-quarter 2020 operating earnings of 56 cents per share, lagging the Zacks Consensus Estimate of 59 cents by 5.1%.

FirstEnergy Corporation (FE - Free Report) came up with first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.1%.

Alliant Energy Corporation (LNT - Free Report) reported first-quarter 2020 operating earnings of 72 cents per share, increasing 30.9% from the year-ago figure of 55 cents.

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