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Eversource (ES) to Report Q2 Earnings: What's in the Cards?

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Eversource Energy (ES - Free Report) is scheduled to report second-quarter 2019 financial results on Aug 1, before the opening bell. The utility delivered a negative earnings surprise of 6.59% in the last reported quarter.

Let’s see how things are shaping up for this earnings season.

Factors to Consider

Eversource’s second-quarter earnings are expected to benefit from electric rate increases in its Connecticut Light and Power Company (CL&P) service territories. Earnings are also anticipated to get a boost from the water distribution segment and cost-saving initiatives undertaken by the company. However, higher interest expenses could offset some of the positives.

The Zacks Consensus Estimate for the second quarter is pegged at 73 cents, which indicates growth of 3.95% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model shows that Eversource Energy is unlikely to beat estimates in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP (which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate), and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to surpass estimates. It does not have right mix as you can see below.

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

Earnings ESP: Earnings ESP of the company is pegged at 0.00%.

Eversource Energy Price and EPS Surprise

Eversource Energy Price and EPS Surprise

Eversource Energy price-eps-surprise | Eversource Energy Quote

Zacks Rank: It currently carries a Zacks Rank #3. Its favorable rank, when combined with the 0.00% ESP, lowers the possibility of an earnings surprise in the to-be-reported quarter.

We caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are a few companies worth considering from the same industry, as these have the right combination of elements to beat on earnings in the upcoming releases.

Entergy Corporation (ETR - Free Report) is expected to release second-quarter results on Jul 31. It has an Earnings ESP of +1.40% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Southern Company (SO - Free Report) is set to release second-quarter results on Jul 31. It has an Earnings ESP of +0.46% and a Zacks Rank of 3.

Black Hills Corporation (BKH - Free Report) is scheduled to release second-quarter results on Aug 5. It has an Earnings ESP of +0.75% and a Zacks Rank of 3.

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