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Eversource (ES) to Report Q2 Earnings: What's in the Cards?

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Eversource Energy ES is slated to release second-quarter 2020 financial results on Jul 31. The utility delivered an average earnings surprise of 0.8% in the last four reported quarters.

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

Factors to Consider

Eversource’s second-quarter earnings are expected to have benefited from regulatory commission-approved distribution revenue decoupling mechanisms. However, a moratorium on disconnections of residential and commercial customers for non-payment of utility service might have offset some of the above positives.

Nearly 52% of its revenues are generated from residential customers. Stay-at-home orders to prevent the novel coronavirus spread increased demand from this customer class during the second quarter. Higher demand from the residential class is likely to have offset the decline in demand from the industrial and commercial space in the quarter.

Expectation

The Zacks Consensus Estimate for second-quarter revenues and earnings per share is pegged at $2.04 billion and 76 cents, indicating 8.38% and 2.7% growth, respectively, from the year-ago reported figures.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Eversource 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. That 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: Its Earnings ESP is -1.58%.

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

Zacks Rank: Eversource currently carries a Zacks Rank #3.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

WEC Energy Group WEC is slated to release second-quarter 2020 results on Aug 4. It has an Earnings ESP of +0.96% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenterPoint Energy, Inc. CNP is slated to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +7.87% and a Zacks Rank #3.

Pinnacle West Capital Corporation PNW is slated to release second-quarter 2020 results on Aug 6. It has an Earnings ESP of +5.07% and a Zacks Rank #3.

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WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report
 
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
 
Pinnacle West Capital Corporation (PNW) : Free Stock Analysis Report
 
Eversource Energy (ES) : Free Stock Analysis Report
 
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