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What's in Store for Eversource Energy (ES) in Q3 Earnings?

Zacks Equity Research
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Eversource Energy ES is expected to beat earnings estimates when it reports third-quarter 2018 financial results on Nov 2, before the opening bell. The utility delivered a positive earnings surprise of 1.33% in the last reported quarter.

What Our Quantitative Model Predicts

Our proven model shows that Eversource Energy is likely to beat estimates in the upcoming quarterly results. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate) and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates, and Eversource Energy has the right mix. You can see the complete list of today’s Zacks #1 Rank stocks here.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Eversource Energy Price and EPS Surprise

Eversource Energy Price and EPS Surprise | Eversource Energy Quote

Earnings ESP: Earnings ESP of the company is pegged at +2.55%.

Zacks Rank: Currently, Eversource Energy carries a Zacks Rank #2. The combination of the company’s favorable Zacks Rank and a positive ESP makes us reasonably confident of a positive earnings surprise in the to-be-reported quarter.

Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Factors to Consider

Eversource Energy’s third-quarter earnings will benefit from the acquisition of Aquarion Water Company. The new rates approved in Connecticut and investments made to strengthen the transmission facilities are going to have a positive impact on its earnings.

The Zacks Consensus Estimate for the third quarter is pegged at 88 cents, which reflects year-over-year growth of 7.3%.

Other Stocks to Consider

In addition to Eversource Energy, investors can consider the following players from the industry, which have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Dominion Energy D is expected to release third-quarter 2018 numbers on Nov 1. It has an Earnings ESP of +2.22% and carries a Zacks Rank #2.

Exelon Corporation EXC is expected to report third-quarter 2018 results on Nov 1. It has an Earnings ESP of +0.27% and a Zacks Rank #2.

Southern Company SO is expected to release third-quarter 2018 numbers on Nov 7. It has an Earnings ESP of +0.37% and carries a Zacks Rank #1.

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