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Eversource Energy (ES) Q2 Earnings and Revenues Top Estimates
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Eversource Energy (ES - Free Report) reported second-quarter 2022 operating earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 84 cents by 2.4%. The bottom line improved 8.9% year over year. The year-over-year improvement in earnings was due to strong contributions from the majority of the segments.
GAAP earnings per share for the second quarter were 84 cents, up 9.1% from 77 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.
Revenues
Second-quarter revenues of $2,572.6 million surpassed the Zacks Consensus Estimate of $2,306 million by 11.6%. Total revenues improved 21.2% from the year-ago figure of $2,122.5 million.
Eversource Energy Price, Consensus and EPS Surprise
Operating expenses increased 26.7% year over year to $2,117.1 million due to a rise in Purchased Power, Fuel and Transmission expenses, and growth in operating and maintenance expenses.
Operating income was up 0.9% from the prior-year quarter to $455.6 million. Interest expenses increased 10.1% from the prior-year quarter to $160.1 million.
Net income for the quarter under review was $291.9 million, up 10.3% from $264.5 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment were $151.5 million, up 10.1% from the prior-year quarter. The improvement primarily resulted from a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment were $129 million, up 7.3% from the prior-year quarter. The improvement primarily resulted from higher revenues and lower pension-related costs.
Natural Gas Distribution: Earnings from this segment for the second quarter were $7.7 million, up 87.8% from the prior-year period. The upside resulted from higher revenues, offset marginally by higher operation and maintenance expenses.
Water Distribution: Earnings from this segment were $9 million, up 1.1% from the year-ago quarter.
Eversource Parent & Other Companies: The segment’s gain was $0.2 million against a loss of $0.9 million in the year-ago quarter.
Guidance
Eversource Energy narrowed its earnings guidance for 2022 to $4.04-$4.14 per share, excluding transaction and transition charges, from the previous range of $4.00 to $4.17 per share. The mid-point of management’s earnings guidance is $4.09, a tad 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% through 2026, using the $3.86 earned in 2021 as a base.
Eversource Energy plans to invest $3.89 billion in 2022. Its total capital expenditure for 2022-2026 is expected to be $18.1 billion, which will assist Eversource in achieving its carbon-neutral target by 2030.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2022 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 8%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 9.3%. The Zacks Consensus Estimate for NEE’s 2022 earnings per share of $2.87 indicates year-over-year growth of 12.55%.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2022 operating earnings per share of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%.
American Electric Power’s long-term earnings growth is projected at 6.2%. The Zacks Consensus Estimate for AEP’s 2022 earnings per share of $5.03 indicates year-over-year growth of 6.1%.
Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2022 operating earnings of 60 cents per share, in line with the Zacks Consensus Estimate.
Xcel Energy’s long-term earnings growth is projected at 6.4%. The Zacks Consensus Estimate for XEL’s 2022 earnings per share of $3.16 indicates year-over-year growth of 6.8%.
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Eversource Energy (ES) Q2 Earnings and Revenues Top Estimates
Eversource Energy (ES - Free Report) reported second-quarter 2022 operating earnings of 86 cents per share, which surpassed the Zacks Consensus Estimate of 84 cents by 2.4%. The bottom line improved 8.9% year over year. The year-over-year improvement in earnings was due to strong contributions from the majority of the segments.
GAAP earnings per share for the second quarter were 84 cents, up 9.1% from 77 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.
Revenues
Second-quarter revenues of $2,572.6 million surpassed the Zacks Consensus Estimate of $2,306 million by 11.6%. Total revenues improved 21.2% from the year-ago figure of $2,122.5 million.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote
Highlights of the Release
Operating expenses increased 26.7% year over year to $2,117.1 million due to a rise in Purchased Power, Fuel and Transmission expenses, and growth in operating and maintenance expenses.
Operating income was up 0.9% from the prior-year quarter to $455.6 million. Interest expenses increased 10.1% from the prior-year quarter to $160.1 million.
Net income for the quarter under review was $291.9 million, up 10.3% from $264.5 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment were $151.5 million, up 10.1% from the prior-year quarter. The improvement primarily resulted from a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment were $129 million, up 7.3% from the prior-year quarter. The improvement primarily resulted from higher revenues and lower pension-related costs.
Natural Gas Distribution: Earnings from this segment for the second quarter were $7.7 million, up 87.8% from the prior-year period. The upside resulted from higher revenues, offset marginally by higher operation and maintenance expenses.
Water Distribution: Earnings from this segment were $9 million, up 1.1% from the year-ago quarter.
Eversource Parent & Other Companies: The segment’s gain was $0.2 million against a loss of $0.9 million in the year-ago quarter.
Guidance
Eversource Energy narrowed its earnings guidance for 2022 to $4.04-$4.14 per share, excluding transaction and transition charges, from the previous range of $4.00 to $4.17 per share. The mid-point of management’s earnings guidance is $4.09, a tad 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% through 2026, using the $3.86 earned in 2021 as a base.
Eversource Energy plans to invest $3.89 billion in 2022. Its total capital expenditure for 2022-2026 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 #3 (Hold). 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 second-quarter 2022 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 8%.
NextEra Energy’s long-term (three to five years) earnings growth is pegged at 9.3%. The Zacks Consensus Estimate for NEE’s 2022 earnings per share of $2.87 indicates year-over-year growth of 12.55%.
American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2022 operating earnings per share of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%.
American Electric Power’s long-term earnings growth is projected at 6.2%. The Zacks Consensus Estimate for AEP’s 2022 earnings per share of $5.03 indicates year-over-year growth of 6.1%.
Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2022 operating earnings of 60 cents per share, in line with the Zacks Consensus Estimate.
Xcel Energy’s long-term earnings growth is projected at 6.4%. The Zacks Consensus Estimate for XEL’s 2022 earnings per share of $3.16 indicates year-over-year growth of 6.8%.