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Eversource Energy (ES) to Report Q4 Earnings: What's in Store?

Eversource Energy ES is scheduled to release fourth-quarter 2023 results on Feb 13, after market close. The company delivered a negative earnings surprise of 2.02% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

Eversource Energy’s transmission projects in Massachusetts include electric transmission upgrades in the greater Boston metropolitan area. Two of these upgrades, the Mystic-Woburn and the Wakefield-Woburn reliability projects, are expected to have come online in the fourth quarter of 2023, which is likely to have had a favorable impact on earnings.

As part of the 2022 NSTAR Electric rate case decision, certain customer rates changed from seasonal demand charges to a single annual demand charge, effective Jan 1, 2023. This rate design change is expected to have increased the company’s fourth-quarter revenues.  

However, higher interest expense is likely to have adversely impacted ES’ performance in the to-be-reported quarter. Eversource Energy expects to record an after-tax other-than-temporary impairment charge in the range of $1.4-$1.6 billion in the fourth quarter of 2023.

Q4 Expectations

The Zacks Consensus Estimate for earnings is pegged at 97 cents per share, indicating a year-over-year increase of 5.4%.

The Zacks Consensus Estimate for revenues is pinned at $3.15 billion, implying a year-over-year improvement of 3.9%.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Eversource Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here, as you will see below.

Eversource Energy Price and EPS Surprise

Eversource Energy Price and EPS Surprise
Eversource Energy Price and EPS Surprise

Eversource Energy price-eps-surprise | Eversource Energy Quote

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Eversource Energy carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few promising players from the same industry that have the right combination of elements to come up with an earnings beat this reporting cycle.

IDACORP IDA is likely to come up with an earnings beat when it reports fourth-quarter results on Feb 15, before market open. It has an Earnings ESP of +2.52% and a Zacks Rank #2 at present.

IDA’s long-term (three to five years) earnings growth rate is 4.38%. The Zacks Consensus Estimate for earnings is pegged at 60 cents per share.

Dominion Energy D is likely to report an earnings beat when it announces fourth-quarter results on Feb 22, before market open. It has an Earnings ESP of +0.63% and a Zacks Rank #3 at present.

D’s long-term earnings growth rate is 7.9%. The Zacks Consensus Estimate for earnings is pegged at 40 cents per share.

Ameren Corporation AEE is expected to come up with an earnings beat when it reports fourth-quarter results on Feb 22, after market close. It has an Earnings ESP of +0.33% and a Zacks Rank #3 at present.

AEE’s long-term earnings growth rate is 5.89%. The Zacks Consensus Estimate for earnings is pegged at 61 cents per share.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ameren Corporation (AEE) : Free Stock Analysis Report

Dominion Energy Inc. (D) : Free Stock Analysis Report

IDACORP, Inc. (IDA) : Free Stock Analysis Report

Eversource Energy (ES) : Free Stock Analysis Report

To read this article on Zacks.com click here.

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