Eversource Energy (ES) Q1 Earnings & Revenues Beat Estimates
Eversource Energy ES reported first-quarter 2019 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 91 cents by 6.6%. The reported figure also improved 14.1% from the year-ago figure of 85 cents.
First-quarter revenues of $2,415.8 million topped the Zacks Consensus Estimate of $2,339 million by 3.3% and increased from the year-ago figure of $2,287.9 million by 5.6%.
Highlights of the Release
Operating expenses increased 4.1% year over year to $1,921.1 million, primarily owing to higher expenses from purchased power, fuel and transmission, plus operation and maintenance costs.
Operating income was up 11.8% from the prior-year quarter to $494.7 million. Interest expenses increased 8.8% year over year to $131.7 million in the quarter.
Net income in the quarter under review was $308.7 million, up 14.5% from the year-ago level.
Eversource Energy Price, Consensus and EPS Surprise
Electric Distribution: Earnings from this segment were up 15.3% from the prior-year quarter to $120.1 million. The upside was primarily attributable to higher distribution revenues, partially offset by the absence of New Hampshire generation earnings.
Electric Transmission: Earnings of the segment improved 10.1% year over year to $118.2 million. The improvement was due to Eversource Energy’s additional investment in the electric transmission system.
Natural Gas Distribution: This segment’s earnings were $76.5 million, up 32.4% from $57.8 million in the year-ago quarter. The segment’s impressive first-quarter results were primarily due to the timing of distribution revenues under the recently approved decoupling mechanism for Eversource’s Connecticut natural gas business.
Water Distribution: Earnings from this segment were $0.9 million compared with $1.5 million in the year-ago quarter. The decline was primarily due to higher pension costs.
Eversource Parent & Other Companies: The segment’s net loss was $7 million compared with the year-ago loss of $1.4 million.
Eversource Energy reiterated its 2019 earnings guidance in the range of $3.40-$3.50 per share. The midpoint of management’s 2019 EPS guidance is $3.45, which is in line with the current Zacks Consensus Estimate for the period.
Eversource Energy currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy, Inc. NEE reported first-quarter 2019 adjusted earnings of $2.20 per share, beating the Zacks Consensus Estimate of $2.01 by 9.4%.
FirstEnergy Corporation FE reported first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.
American Electric Power Co., Inc. AEP reported first-quarter 2019 adjusted earnings per share of $1.19, surpassing the Zacks Consensus Estimate of $1.10 by 8.2%.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>
Click to get this free report
American Electric Power Company, Inc. (AEP): Free Stock Analysis Report
FirstEnergy Corporation (FE): Free Stock Analysis Report
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
Eversource Energy (ES): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.