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Eversource Energy (ES) Misses on Q1 Earnings & Revenues

Eversource EnergyES reported first-quarter 2016 operating earnings of 77 cents per share, short of the Zacks Consensus Estimate by a penny and 3.8% lower than the year-ago figure.

Total Revenues

Also, Eversource Energy's first-quarter revenues of $2,055.6 million lagged the Zacks Consensus Estimate of $2,504 million by 17.9% and declined 18.2% from the year-ago level of $2,513.4 million. Results impacted by lower sales as a result of mild weather.

Highlights of the Release

Operating expenses decreased nearly 22.3% year over year to $1567.1 million, primarily due to lower purchased power, and fuel and transmission expenses.

Operating income dipped 2% to $488.5 million from $497.5 million a year ago.

In the reported quarter, interest expense stood at $98.2 million, up 3.6% from the year-ago level.

Segmental Performance

Electric Distribution and Generation : Segment earnings tanked 17% to $108.4 million primarily due to lower distribution revenues, which resulted from mild weather.

Electric Transmission : Segment earnings surged 28.7% to $85.7 million on the back of a higher level of investment in transmission facilities.

Natural Gas Distribution : The segment reported earnings of $50.9 million, down 8.5% from the year-ago tally of $55.6 million.

Parent & Other Companies : The segment reported a loss of $0.8 million. In the year-ago period, it has recorded earnings of $0.5 million.

Financial Update

Cash and cash equivalents were $51 million as of Mar 31, 2016, up from $23.9 million as of Dec 31, 2015.

Long-term debt was $9,144.7 million as of Mar 31, 2016, up from $8,805.6 million as of Dec 31, 2015.

Cash flow from operating activities was $500 million, marginally up from $491.5 million in the year-ago comparable period.

Peer Releases

Pinnacle West Capital Corp.PNW reported adjusted earnings per share of 4 cents in the first quarter of 2016, lagging the Zacks Consensus Estimate of 13 cents by 69.2%.

WEC Energy Group WEC reported first-quarter 2016 adjusted earnings of $1.09 per share, beating the Zacks Consensus Estimate of $1.02.

Alliant Energy Corp. LNT reported first-quarter 2016 operating earnings from continuing operation, in line with the Zacks Consensus Estimate of 86 cents.

Zacks Rank

Currently, Eversource Energy carries a Zacks Rank #3 (Hold).

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WEC ENERGY GRP (WEC): Free Stock Analysis Report

PINNACLE WEST (PNW): Free Stock Analysis Report

ALLIANT ENGY CP (LNT): Free Stock Analysis Report

EVERSOURCE EGY (ES): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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