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Eversource (ES) Q3 Earnings and Revenues Miss Estimates
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Eversource Energy (ES - Free Report) reported third-quarter 2023 adjusted earnings of 97 cents per share, which missed the Zacks Consensus Estimate of 99 cents by 2%. The bottom line declined 4% year over year.
Total Revenues
ES’ third-quarter revenues of $2,791.5 million missed the Zacks Consensus Estimate of $3,334 million by 16.3%. Total revenues also declined 13.2% from the year-ago quarter’s figure of $3,215.6 million.
Eversource Energy Price, Consensus and EPS Surprise
Total operating expenses decreased 14.9% year over year to $2,260.9 million.
Operating income decreased 4.8% from the prior-year quarter’s level to $530.6 million. Interest expenses increased 24.7% to $222.3 million.
Net income in the quarter under review was $341.5 million, down 2.8% from $351.3 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment totaled $160.3 million, up 2.9% from the prior-year quarter’s level. The increase was primarily due to a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment amounted to $173.3 million, down 23% year over year. This was due to the timing impact of a rate design change for Eversource’s Massachusetts electric business that has the effect of shifting certain peak demand revenues from summer to winter.
Natural Gas Distribution: This segment reported a loss of $33.7 million, wider than the prior-year quarter’s registered loss of $24.6 million. This was due to higher depreciation and operations and maintenance expenses.
Water Distribution: Earnings from this segment amounted to $16.6 million, down 0.6% from the year-ago quarter’s figure.
Eversource Parent & Other Companies: The segment reported earnings of $23.2 million in third-quarter 2023, marking an improvement from the year-ago quarter's reported loss of $21.4 million. This primarily reflects a lower effective tax rate, partially offset by higher interest expense.
Guidance
Eversource narrowed its 2023 earnings expectation to the band of $4.30-$4.43 per share from the previously guided range of $4.25-$4.43. The mid-point of the revised guidance is $4.37, a bit higher than the Zacks Consensus Estimate of $4.36.
The company reaffirmed its expectations for long-term EPS growth rate from the existing core regulated businesses in the upper half of 5-7% through 2027, using the $4.09 earned in 2022 as a base.
NRG Energy, Inc. (NRG - Free Report) reported third-quarter 2023 earnings of $1.62 per share, which beat the Zacks Consensus Estimate of $1.53 by 5.9%.
NRG’s long-term (three to five years) earnings growth rate is 10.26%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.03 per share, indicating a year-over-year increase of 92%.
NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%.
NEE’s long-term earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 earnings is pegged at $3.12 per share, indicating a year-over-year increase of 7.6%.
Dominion Energy Inc. (D - Free Report) delivered third-quarter 2023 operating earnings of 77 cents per share, which lagged the Zacks Consensus Estimate of 78 cents by a penny.
D’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for 2023 earnings is pegged at $3.02 per share.
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Eversource (ES) Q3 Earnings and Revenues Miss Estimates
Eversource Energy (ES - Free Report) reported third-quarter 2023 adjusted earnings of 97 cents per share, which missed the Zacks Consensus Estimate of 99 cents by 2%. The bottom line declined 4% year over year.
Total Revenues
ES’ third-quarter revenues of $2,791.5 million missed the Zacks Consensus Estimate of $3,334 million by 16.3%. Total revenues also declined 13.2% from the year-ago quarter’s figure of $3,215.6 million.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote
Highlights of the Release
Total operating expenses decreased 14.9% year over year to $2,260.9 million.
Operating income decreased 4.8% from the prior-year quarter’s level to $530.6 million. Interest expenses increased 24.7% to $222.3 million.
Net income in the quarter under review was $341.5 million, down 2.8% from $351.3 million recorded in the year-ago period.
Segmental Performance
Electric Transmission: Earnings from this segment totaled $160.3 million, up 2.9% from the prior-year quarter’s level. The increase was primarily due to a higher level of investment in Eversource’s electric transmission system.
Electric Distribution: Earnings from this segment amounted to $173.3 million, down 23% year over year. This was due to the timing impact of a rate design change for Eversource’s Massachusetts electric business that has the effect of shifting certain peak demand revenues from summer to winter.
Natural Gas Distribution: This segment reported a loss of $33.7 million, wider than the prior-year quarter’s registered loss of $24.6 million. This was due to higher depreciation and operations and maintenance expenses.
Water Distribution: Earnings from this segment amounted to $16.6 million, down 0.6% from the year-ago quarter’s figure.
Eversource Parent & Other Companies: The segment reported earnings of $23.2 million in third-quarter 2023, marking an improvement from the year-ago quarter's reported loss of $21.4 million. This primarily reflects a lower effective tax rate, partially offset by higher interest expense.
Guidance
Eversource narrowed its 2023 earnings expectation to the band of $4.30-$4.43 per share from the previously guided range of $4.25-$4.43. The mid-point of the revised guidance is $4.37, a bit higher than the Zacks Consensus Estimate of $4.36.
The company reaffirmed its expectations for long-term EPS growth rate from the existing core regulated businesses in the upper half of 5-7% through 2027, using the $4.09 earned in 2022 as a base.
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.
Recent Releases
NRG Energy, Inc. (NRG - Free Report) reported third-quarter 2023 earnings of $1.62 per share, which beat the Zacks Consensus Estimate of $1.53 by 5.9%.
NRG’s long-term (three to five years) earnings growth rate is 10.26%. The Zacks Consensus Estimate for 2023 earnings is pegged at $5.03 per share, indicating a year-over-year increase of 92%.
NextEra Energy, Inc. (NEE - Free Report) released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%.
NEE’s long-term earnings growth rate is 8.18%. The Zacks Consensus Estimate for 2023 earnings is pegged at $3.12 per share, indicating a year-over-year increase of 7.6%.
Dominion Energy Inc. (D - Free Report) delivered third-quarter 2023 operating earnings of 77 cents per share, which lagged the Zacks Consensus Estimate of 78 cents by a penny.
D’s long-term earnings growth rate is 4%. The Zacks Consensus Estimate for 2023 earnings is pegged at $3.02 per share.