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Eversource (ES) Q3 Earnings Miss Estimates, Reaffirms View

Eversource Energy ES reported third-quarter 2017 operating earnings of 82 cents per share, missing the Zacks Consensus Estimate of 84 cents by 2.4%. Reported earnings were also down by 1.2% from the year-ago quarter figure of 83 cents.

Total Revenues

Eversource’s third-quarter revenues of $1,988.5 million missed the Zacks Consensus Estimate of $2,076 million by 4.2% and decreased 2.5% from the year-ago figure of $2,039.7 million. Lower third-quarter revenues can be attributed to the much milder summer temperatures in 2017, compared with 2016.

Highlights of the Release

In the reported quarter, total electric distribution decreased 8.1% year over year to 14,096 Gigawatt hours, and natural gas distribution increased 5.5% to 11,525 million cubic feet of gas.

Operating expenses decreased nearly 2.9% year over year to $1,485.9 million, primarily owing to lower expenses incurred for purchased power, fuel and transmission as well as operations and maintenance activities.

Operating income was down 1.4% to $502.6 million from $509.9 million a year ago.

In the reported quarter, interest expense was $108.7 million, up 8.8% year over year.

Net income in the reported quarter was $260.4 million, down 1.8% year over year.

Segmental Performance

Electric Distribution and Generation: Segment earnings were down 7.5% to $157.4 million primarily due to impact on sales of milder summer weather.

Electric Transmission: Segment earnings advanced approximately 12% to $99 million backed by increased level of investment in Eversource’s transmission system.

Natural Gas Distribution: Segment incurred a loss of $6.2 million compared with loss of $7 million in the year-ago quarter. Improved third-quarter 2017 results were primarily due to lower non-tracked operations and maintenance expense.

Eversource Parent & Other Companies: The segment earned $10.2 million, lower than the year-ago earnings of $13.8 million.

Eversource Energy Price, Consensus and EPS Surprise

Guidance

Eversource reaffirmed 2017 earnings per share in the range of $3.05-$3.20. Long-term earnings growth is projected in the range of 5-7%.

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

FirstEnergy Corporation FE reported third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 86 cents by 12.8%.

NextEra Energy, Inc. NEE reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.

Xcel Energy Inc. XEL posted third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%.

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