U.S. Markets open in 3 hrs 36 mins

Eversource (ES) Q2 Earnings Top Estimates, Revenues Miss

Zacks Equity Research

Eversource Energy ES reported second-quarter 2019 operating earnings of 74 cents per share, beating the Zacks Consensus Estimate by a penny.
 
GAAP earnings in the second quarter were 10 cents compared with 76 cents in the year-ago period.

Total Revenues

Second-quarter revenues of $1,884.5 million lagged the Zacks Consensus Estimate of $1,923 million by 2% but improved 1.6% from the year-ago figure of $1,853.9 million.

Eversource Energy Price, Consensus and EPS Surprise

Eversource Energy Price, Consensus and EPS Surprise

Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote

Highlights of the Release

Operating expenses increased 18.5% year over year to $1,733.5 million, primarily owing to higher operation and maintenance (O&M) costs.

Operating income was down 61.5% from the prior-year quarter to $150.9 million. Interest expenses increased 5% year over year to $132.7 million in the quarter.

Net income in the quarter under review was $33.3 million, down from $244.6 million recorded in the year-ago period.

Segmental Performance

Electric Distribution: Earnings from this segment were up 4% from the prior-year quarter to $105.4 million. The upside was primarily attributable to higher distribution revenues, partially offset by the absence of New Hampshire generation earnings.

Electric Transmission: Earnings of the segment improved 3.8% year over year to $117 million. The improvement was due to the new decoupled rate structure at Yankee Gas and increased earnings from capital tracking mechanisms on higher level of investment.

Natural Gas Distribution: This segment’s loss was $1.8 million against earnings of $5 million in the year-ago quarter. The segment’s weak results were due to higher O&M expenses and changes in the timing of distribution revenues.

Water Distribution: Earnings from this segment were $8 million compared with $7.2 million in the year-ago quarter. The year-over-year improvement was primarily due to continued investment in Aquarion systems and the outcome of last year's rate review in Massachusetts.

Eversource Parent & Other Companies: The segment’s income was $7.3 million compared with $16.6 million in the year-ago quarter. The weak results were due to higher interest expenses.

Guidance

Eversource reiterated its 2019 earnings guidance in the range of $3.40-$3.50 per share. The midpoint of management’s 2019 EPS guidance is $3.45, which is higher than the current Zacks Consensus Estimate of $3.44 for the period.

Zacks Rank

Eversource currently carries a Zacks Rank #3 (Hold).

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

Other Releases

NextEra Energy, Inc. NEE reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%.

FirstEnergy Corporation FE came up with second-quarter 2019 operating earnings of 61 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 1.7%.

Dominion Energy Inc. D reported second-quarter 2019 operating earnings of 77 cents per share, beating the Zacks Consensus Estimate of 75 cents by 2.6%.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>


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
 
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
FirstEnergy Corporation (FE) : Free Stock Analysis Report
 
Dominion Energy Inc. (D) : Free Stock Analysis Report
 
Eversource Energy (ES) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.