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Eversource Energy (ES) Q2 Earnings In Line With Estimates
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Eversource Energy (ES - Free Report) reported second-quarter 2024 adjusted earnings of 95 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line decreased 5% from the year-ago quarter’s figure of $1.00.
Total Revenues
ES’ revenues of $2.53 billion missed the Zacks Consensus Estimate of $2.88 billion by 12%. Total revenues also declined 3.8% from the year-ago quarter’s figure of $2.63 billion.
Eversource Energy Price, Consensus and EPS Surprise
Total operating expenses were $1.93 billion, down 6.9% year over year. This was caused by lower purchased power, purchased natural gas and transmission expenses compared with the prior-year quarter.
Operating income totaled $602.5 million, up 7.4% year over year.
Interest expenses amounted to $271.3 million, 30.8% higher than the prior-year quarter’s level.
Segmental Performance
Electric Transmission: Earnings totaled $189 million, up 17.3% year over year.
Electric Distribution: Earnings amounted to $149.7 million, down 9.5% year over year. This was due to higher non-tracked operations and maintenance (O&M) expenses, caused by higher storm restoration costs.
Natural Gas Distribution: Earnings totaled $27.1 million, up 132% year over year. This was due to higher revenues associated with investments in its natural gas infrastructure and a base distribution rate increase at NSTAR Gas.
Water Distribution: Earnings amounted to $8 million, down 14% year over year. Lower earnings in the second quarter were primarily due to higher non-tracked O&M and interest expenses.
Eversource Parent & Other Companies: The segment reported a quarterly loss of $38.5 million, wider than the year-ago quarter's loss of $5.1 million. This deterioration was caused by higher interest expenses.
Guidance
Eversource Energy reaffirmed its 2024 earnings projection in the band of $4.50-$4.67 per share. The Zacks Consensus Estimate is pegged at $4.56 per share, lower than $4.58, the midpoint of the company’s guided range.
The company expects its long-term EPS growth rate from existing core regulated businesses to be between 5% and 7% through 2028, using $4.34 per share (in 2023) as a base.
It plans to invest $23.1 billion during 2024-2028, out of which nearly $16.1 billion will be invested in electric and natural gas distribution networks, and $7.2 billion in the electric transmission segment.
ONE Gas, Inc. (OGS - Free Report) is slated to report second-quarter 2024 results on Aug 5, after market close. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share.
OGS’ long-term (three to five years) earnings growth rate is 5%. It delivered an average earnings surprise of 0.9% in the past four quarters.
NiSource Inc. (NI - Free Report) is set to report second-quarter 2024 results on Aug 7, before market open. The Zacks Consensus Estimate for earnings is pegged at 15 cents per share.
NI’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 6.8% in the past four quarters.
NRG Energy, Inc. (NRG - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.30 per share.
NRG delivered an average earnings surprise of 4.2% in the past four quarters. The Zacks Consensus Estimate for 2024 earnings is pinned at $6.61 per share.
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Eversource Energy (ES) Q2 Earnings In Line With Estimates
Eversource Energy (ES - Free Report) reported second-quarter 2024 adjusted earnings of 95 cents per share, in line with the Zacks Consensus Estimate. However, the bottom line decreased 5% from the year-ago quarter’s figure of $1.00.
Total Revenues
ES’ revenues of $2.53 billion missed the Zacks Consensus Estimate of $2.88 billion by 12%. Total revenues also declined 3.8% from the year-ago quarter’s figure of $2.63 billion.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy price-consensus-eps-surprise-chart | Eversource Energy Quote
Highlights of the Release
Total operating expenses were $1.93 billion, down 6.9% year over year. This was caused by lower purchased power, purchased natural gas and transmission expenses compared with the prior-year quarter.
Operating income totaled $602.5 million, up 7.4% year over year.
Interest expenses amounted to $271.3 million, 30.8% higher than the prior-year quarter’s level.
Segmental Performance
Electric Transmission: Earnings totaled $189 million, up 17.3% year over year.
Electric Distribution: Earnings amounted to $149.7 million, down 9.5% year over year. This was due to higher non-tracked operations and maintenance (O&M) expenses, caused by higher storm restoration costs.
Natural Gas Distribution: Earnings totaled $27.1 million, up 132% year over year. This was due to higher revenues associated with investments in its natural gas infrastructure and a base distribution rate increase at NSTAR Gas.
Water Distribution: Earnings amounted to $8 million, down 14% year over year. Lower earnings in the second quarter were primarily due to higher non-tracked O&M and interest expenses.
Eversource Parent & Other Companies: The segment reported a quarterly loss of $38.5 million, wider than the year-ago quarter's loss of $5.1 million. This deterioration was caused by higher interest expenses.
Guidance
Eversource Energy reaffirmed its 2024 earnings projection in the band of $4.50-$4.67 per share. The Zacks Consensus Estimate is pegged at $4.56 per share, lower than $4.58, the midpoint of the company’s guided range.
The company expects its long-term EPS growth rate from existing core regulated businesses to be between 5% and 7% through 2028, using $4.34 per share (in 2023) as a base.
It plans to invest $23.1 billion during 2024-2028, out of which nearly $16.1 billion will be invested in electric and natural gas distribution networks, and $7.2 billion in the electric transmission segment.
Zacks Rank
Eversource Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
ONE Gas, Inc. (OGS - Free Report) is slated to report second-quarter 2024 results on Aug 5, after market close. The Zacks Consensus Estimate for earnings is pegged at 49 cents per share.
OGS’ long-term (three to five years) earnings growth rate is 5%. It delivered an average earnings surprise of 0.9% in the past four quarters.
NiSource Inc. (NI - Free Report) is set to report second-quarter 2024 results on Aug 7, before market open. The Zacks Consensus Estimate for earnings is pegged at 15 cents per share.
NI’s long-term earnings growth rate is 6%. It delivered an average earnings surprise of 6.8% in the past four quarters.
NRG Energy, Inc. (NRG - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.30 per share.
NRG delivered an average earnings surprise of 4.2% in the past four quarters. The Zacks Consensus Estimate for 2024 earnings is pinned at $6.61 per share.