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Eversource (ES) Q2 Earnings Beat, Revenues Miss Estimates

Eversource Energy ES reported second-quarter 2017 operating earnings of 72 cents per share, beating the Zacks Consensus Estimate of 68 cents by 5.8%. The quarterly earnings were also up 12.5% from the year-ago quarter figure of 64 cents.

The year-over-year increase in earnings can be attributed to higher level of investment in Eversource’s transmission system.

Total Revenue

Eversource’s second-quarter revenues of $1,762.8 million missed the Zacks Consensus Estimate of $1,800 million by 2.1% and decreased 0.2% from the year-ago figure of $1,767.2 million.

Highlights of the Release

In the reported quarter, total electric distribution decreased 1.9% year over year to 12,164 Gigawatt hours, and natural gas distribution decreased 4.6% to 17,016 million cubic feet of gas.

Operating expenses decreased nearly 2.7% year over year to $1,307.1 million, primarily due to lower expenses incurred for purchased power, fuel and transmission as well as operations and maintenance activities.

Operating income was up 7.6% to $455.7 million from $423.4 million a year ago.

In the reported quarter, interest expense was $107.3 million, up 6.8% year over year.

Net income in the reported quarter was $230.7 million, up 13.3% year over year.

Eversource Energy Price, Consensus and EPS Surprise

 

Segmental Performance

Electric Distribution and Generation: Segment earnings were up 18.6% to 1.9 million primarily due to lower operation and maintenance expenses along with higher distribution revenues.

Electric Transmission: Segment earnings advanced 4.2% to $96.4 million backed by increased level of investment in company’s transmission system.

Natural Gas Distribution: Segment earnings were $4.5 million compared with $8.0 million in the year-ago quarter. Lower sales were a result of milder early spring temperatures in 2017, higher depreciation, and operation and maintenance expense.

Eversource Parent & Other Companies: The segment earned $7.9 million, much higher than the year-ago earnings of $0.3 million. Improved results were a result of gains related to company’s investment in certain renewable energy facilities.

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 #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here..

Other Utility Releases

NextEra Energy, Inc. NEE reported second-quarter 2017 operating earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.68%.

DTE Energy Company DTE reported second-quarter 2017 adjusted earnings of $1.07 per share, beating the Zacks Consensus Estimate of 99 cents by 8.08%.

WEC Energy Group, Inc. WEC reported second-quarter 2017 adjusted earnings of 63 cents per share, compared to the Zacks Consensus Estimate of 59 cents by 6.78%.

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