After Eversource Energy’s (NYSE:ES) earnings announcement in September 2018, the consensus outlook from analysts appear somewhat bearish, as a 5.2% rise in profits is expected in the upcoming year, against the higher past 5-year average growth rate of 6.1%. By 2020, we can expect Eversource Energy’s bottom line to reach US$1.0b, a jump from the current trailing-twelve-month of US$988m. Below is a brief commentary around Eversource Energy’s earnings outlook going forward, which may give you a sense of market sentiment for the company. Investors wanting to learn more about other aspects of the company should research its fundamentals here.
Can we expect Eversource Energy to keep growing?
Longer term expectations from the 11 analysts covering ES’s stock is one of positive sentiment. Generally, broker analysts tend to make predictions for up to three years given the lack of visibility beyond this point. To understand the overall trajectory of ES’s earnings growth over these next fews years, I’ve fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
This results in an annual growth rate of 5.9% based on the most recent earnings level of US$988m to the final forecast of US$1.2b by 2022. This leads to an EPS of $3.86 in the final year of projections relative to the current EPS of $3.11. Margins are currently sitting at 13%, which is expected to expand to 15% by 2022.
Future outlook is only one aspect when you’re building an investment case for a stock. For Eversource Energy, I’ve compiled three relevant aspects you should further examine:
- Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
- Future Earnings: How does Eversource Energy’s growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Eversource Energy? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.