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