Eversource's (ES) Q4 Earnings and Revenues Miss Estimates
Eversource Energy ES reported fourth-quarter 2021 operating earnings of 91 cents per share, which lagged the Zacks Consensus Estimate of 93 cents by 2.2%. The bottom line, however, improved 7% year over year. The year-over-year improvement in earnings was due to strong contribution from the acquired Columbia Gas of Massachusetts assets and solid performance of Electric Transmission and Electric Distribution segments.
GAAP earnings per share for the fourth quarter were 89 cents, up 12.7% from 79 cents reported in the year-ago period. The difference between GAAP and operating earnings per share was due to one-time acquisition and settlement charges.
Operating earnings per share for 2021 were $3.86, up 6.1% year over year. Full-year earnings came within the guided range of $3.81-$3.93 per share.
Revenues
Fourth-quarter revenues of $2,481.9 million missed the Zacks Consensus Estimate of $2,492 million by 0.4%. Total revenues, however, improved 11.1% from the year-ago figure of $2,233.9 million.
Total revenues for 2021 were $9,863.1, up 10.8% year over year.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote
Highlights of the Release
Operating expenses increased nearly 12.9% year over year to $2,009.1 million. Operating income was up 3.9% from the prior-year quarter to $472.9 million. Interest expenses increased 11.7% from the prior-year quarter to $135.4 million.
Net income for the quarter under review was $308.6 million, up 12.7% from $273.8 million recorded in the year-ago period.
Segmental Performance
Electric Distribution: Earnings from this segment were $105 million, up 12.4% from the prior-year quarter. The improvement was primarily due to lower operation and maintenance expenses.
Electric Transmission: Earnings from this segment for the fourth quarter were $132.3 million, up 9.6% from the prior-year period. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: Earnings from this segment for the fourth quarter were $75.2 million, up 20.7% from the prior-year period. The upside was due to the addition of the former Columbia Gas of Massachusetts assets.
Water Distribution: Earnings from this segment were $6.7 million, up 19.6% from $5.6 million in the year-ago quarter. The improved fourth-quarter results were primarily due to gains from a land sale.
Eversource Parent & Other Companies: The segment’s loss was $5.9 million against earnings of $9.2 million in the year-ago quarter.
Guidance
Eversource Energy issued its earnings guidance for 2022 in the range of $4.00-$4.17 per share. The midpoint of management’s earnings guidance is nearly $4.1, which is lower than the Zacks Consensus Estimate of $4.11 for the year.
The company also reaffirmed its expectation for long-term earnings per share growth rate from the existing core regulated businesses in the upper half of 5-7%, using the $3.86 earned in 2021 as a base.
Eversource plans to invest $3.89 billion in 2022. Its total capital expenditure for the 2022-2026 time period is expected to be $18.1 billion, which will assist Eversource to achieve its carbon-neutral target by 2030. This current capital expenditure plan reflects a $1.1-billion increase from the prior five-year capital expenditure target of $17 billion.
Eversource expects to increase its dividend per share annually in the range of 5-7% over the long term, subject to the approval of its board of directors.
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 NEE delivered fourth-quarter 2021 operating earnings per share of 41 cents, which surpassed the Zacks Consensus Estimate of 40 cents by 2.5%.
NextEra Energy’s long-term (three to five) earnings growth is projected at 8.8%. The Zacks Consensus Estimate for NEE’s 2022 earnings indicates year-over-year growth of 8.6%.
Dominion Energy Inc. D reported fourth-quarter 2021 operating earnings of 90 cents per share, on par with the Zacks Consensus Estimate.
Dominion’s long-term earnings growth is projected at 6%. The Zacks Consensus Estimate for D’s 2022 indicates a year-over-year decline of 6.7%.
WEC Energy Group WEC reported fourth-quarter 2021 operating earnings per share of 71 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 4.4%.
WEC Energy’s long-term earnings growth is projected at 6%. The Zacks Consensus Estimate for WEC’s 2022 earnings indicates year-over-year growth of 4.6%.
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