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Eversource's (ES) Q1 Earnings and Revenues Beat Estimates

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Eversource Energy (ES - Free Report) reported first-quarter 2022 operating earnings of $1.30 per share, which surpassed the Zacks Consensus Estimate of $1.22 by 6.6%. The bottom line improved 13% year over year. The year-over-year improvement in earnings was due to strong contributions from all the segments.

GAAP earnings per share for the first quarter were $1.28, up 23.3% from $1.06 reported in the year-ago period. The difference between GAAP and operating earnings per share was due to one-time acquisition and settlement charges.

Revenues

First-quarter revenues of $3,471.3 million surpassed the Zacks Consensus Estimate of $2,987 million by 16.2%. Total revenues improved 22.8% from the year-ago figure of $2,825.9 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 nearly 25.4% year over year to $2,808.3 million. Operating income was up 13.2% from the prior-year quarter to $663.1 million. Interest expenses increased 11.3% from the prior-year quarter to $153.3 million.

Net income for the quarter under review was $445.3 million, up 21% from $368 million recorded in the year-ago period.

Segmental Performance

Electric Distribution: Earnings from this segment were $140.9 million, up 20.1% from the prior-year quarter. The improvement was primarily due to higher revenues and lower pension costs.

Electric Transmission Earnings from this segment were $148.5 million, up 9.7% from the prior-year quarter. The upside was due to increased investment in Eversource’s transmission facilities.

Natural Gas Distribution: Earnings from this segment for the first quarter were $164 million, up 11.1% from the prior-year period. The upside was due to higher revenues and lower pension costs.

Water Distribution: Earnings from this segment were $3.7 million, up 2.8% from the year-ago quarter.

Eversource Parent & Other Companies: The segment’s loss was $8.4 million wider than loss of $7.5 million in the year-ago quarter.

Guidance

Eversource Energy reiterated 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, on par with the Zacks Consensus Estimate of $4.10 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 in achieving its carbon-neutral target by 2030.

Zacks Rank

Eversource currently carries a Zacks Rank #4 (Sell).

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

Other Releases

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2022 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 69 cents by 7.3%.

NextEra Energy’s long-term (three to five years) earnings growth is pegged at 8.8%. The Zacks Consensus Estimate for NEE’s 2022 earnings per share of $2.81 indicates year-over-year growth of 10.2%.

American Electric Power Company, Inc. (AEP - Free Report) reported first-quarter 2022 adjusted earnings per share of $1.22, which beat the Zacks Consensus Estimate of $1.19 by 2.5%.

American Electric Power’s long-term earnings growth is projected at 5.9%. The Zacks Consensus Estimate for AEP’s 2022 earnings indicates year-over-year growth of 5.3%.

Xcel Energy Inc. (XEL - Free Report) posted first-quarter 2022 operating earnings of 70 cents per share, which surpassed the Zacks Consensus Estimate of 68 cents by 2.9%.

Xcel Energy’s long-term earnings growth is projected at 6.4%. The Zacks Consensus Estimate for XEL’s 2022 earnings indicate year-over-year growth of 7.1%.

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