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What to Expect From Eversource (ES) This Earnings Season?

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Eversource Energy (ES - Free Report) is scheduled to release first-quarter earnings results before the opening bell on May 3. In the last reported quarter, the company reported a negative earnings surprise of 1.32%.

Let’s see how things are shaping up prior to the earnings announcement.

Factors to Consider
                                                                    
Eversource Energy’s first-quarter earnings will benefit from Aquarion earnings, electric distribution rate increases, and lower operation and maintenance expenses. However, higher depreciation and property taxes, and increase in interest expenses will act as headwinds.

The Zacks Consensus Estimate for revenues is pegged at $2,106 million, reflecting a marginal increase of 0.04% year over year. Additionally, the Zacks Consensus Estimate for earnings of 86 cents per share also reflects a year-over-year increase of 4.9%.


Eversource Energy Price and EPS Surprise
 

Eversource Energy Price and EPS Surprise | Eversource Energy Quote

Earnings Whisper

A stock needs to have both a positive  Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates and at present, Eversource Energy does not have the right combination.

Zacks ESP: Eversource has an Earnings ESP of -0.39%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Eversource carries a Zacks Rank #4 (Sell). The combination of the company’s Zacks Rank and negative ESP makes us skeptical about an earnings beat this season.

As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Eversource Energy does not have the right combination of the key ingredients, but investors can consider the following players from the industry that have the right mix of elements to post earnings beat in the to-be-reported quarter.

WEC Energy Group, Inc. (WEC - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2. WEC Energy Group is set to report first-quarter results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IDACORP, Inc. (IDA - Free Report) has an Earnings ESP of +3.55% and a Zacks Rank #2. IDACORP is set to report first-quarter results on May 3.

Hawaiian Electric Industries, Inc. (HE - Free Report) has an Earnings ESP of +0.91% and a Zacks Rank #2. Hawaiian Electric is set to report first-quarter results on May 4.

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