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Eversource Energy Q3 Earnings and Revenues Beat Estimates

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Eversource Energy (ES - Free Report) reported third-quarter 2024 adjusted earnings of $1.13 per share, which surpassed the Zacks Consensus Estimate of $1.04 per share by 8.7%. The bottom line also increased 16.5% from the year-ago figure of 97 cents.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Total Revenues of ES

Revenues of $3.06 billion beat the Zacks Consensus Estimate of $3.05 billion by 0.4%. Total revenues also increased 9.6% from the year-ago figure of $2.79 billion.

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 ES’ Earnings Release

Total operating expenses were $2.45 billion, up 8.4% year over year due to higher operations and maintenance expenses, and increased depreciation and amortization expenses.

Operating income totaled $612.4 million, up 15.4% year over year.

Interest expenses amounted to $300.6 million, 35.2% higher than the prior-year level.

ES’ Segmental Performance

Electric Transmission: Earnings totaled $174.9 million, up 9.1% year over year. This was due to a higher level of investment in Eversource’s electric transmission system.

Electric Distribution: Earnings amounted to $203.5 million, up 17.4% year over year. This was due to base distribution rate increases at NSTAR Electric and PSNH, and continued investments in its distribution system. The rise can also be attributed to lower storm-related operations and maintenance expenses.

Natural Gas Distribution: This segment reported a loss of $30.2 million, narrower than the year-ago loss of $33.7 million.

Water Distribution: Earnings amounted to $23.7 million, up 42.8% year over year. This was due to higher revenues from its water acquisition and lower depreciation expenses.

Eversource Parent & Other Companies: The segment reported earnings of $34 million, up 46.6% year over year. This was caused primarily by a lower effective tax rate.

ES’ Guidance

Eversource Energy lowered its 2024 earnings guidance to $4.52-$4.60 per share from the previous projection of $4.50-$4.67. The Zacks Consensus Estimate is pegged at $4.56 per share, which is on par with the midpoint of the
company’s new guided range.

ES 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 has raised its guidance for capital investments to $23.7 billion from the previously predicted $23.1 billion for the 2024-2028 period. This is due to the recent approval of the Electric Sector Modernization Plan in Massachusetts.

ES’ 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

Pinnacle West Capital Corporation (PNW - Free Report) is scheduled to report third-quarter results on Nov. 6, before market open. The Zacks Consensus Estimate for earnings is pegged at $3.35 per share.

PNW’s long-term (three to five years) earnings growth rate is 8.22%. The Zacks Consensus Estimate for 2024 earnings is pinned at $4.90 per share, which implies a year-over-year improvement of 11.1%.

Evergy (EVRG - Free Report) is scheduled to report third-quarter results on Nov. 7, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.95 per share, which suggests a year-over-year increase of 3.7%.

EVRG’s long-term earnings growth rate is 5.85%. The Zacks Consensus Estimate for 2024 earnings is pinned at $3.84 per share, which implies a year-over-year improvement of 8.5%.

NRG Energy (NRG - Free Report) is scheduled to report third-quarter results on Nov. 8, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.71 per share, which suggests a year-over-year increase of 5.6%.

The Zacks Consensus Estimate for 2024 earnings is pinned at $6.17 per share, which implies a year-over-year improvement of 42.8%. It delivered an average earnings surprise of 7% in the past four quarters.

 


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