Eversource (ES) Q2 Earnings In Line, Revenues Miss Estimates
Eversource Energy ES reported second-quarter 2020 operating earnings of 76 per share, on par with the Zacks Consensus Estimate. However, the reported earnings improved 2.7% year over year. The year-over-year improvement in earnings was due to strong execution of its operations amid the pandemic.
Second-quarter revenues of $1,953 million lagged the Zacks Consensus Estimate of $2,042 million by 4.4%. However, total revenues improved 3.7% from the year-ago figure of $1,884 million.
Highlights of the Release
Operating expenses decreased 12.3% year over year to $1,519.5 million. Operating income was up 187.4% from the prior-year quarter to $433.7 million. Interest expenses increased 1.2% year over year to $134.3 million.
Net income in the quarter under review was $252.2 million, up substantially from $31.4 million recorded in the year-ago period.
Eversource Energy Price, Consensus and EPS Surprise
Electric Distribution: Earnings from this segment were $115 million, up 9.1% from the prior-year quarter. The upside was primarily attributed to higher revenues, partially offset by increased depreciation, operation and maintenance, as well as interest expenses.
Electric Transmission: Earnings of the segment were up 10.7% year over year to $129.5 million. The upside was due to increased investment in Eversource’s transmission facilities.
Natural Gas Distribution: This segment’s income was $3.3 million against a loss of $1.8 million in the year-ago quarter. The year-over-year improvement was due to higher revenues, partially offset by increased operation and maintenance expenses, as well as high depreciation costs.
Water Distribution: Earnings from this segment were $10.4 million, up 30% from $8 million in the year-ago quarter. The improved results were primarily due to higher revenues and lower depreciation expense.
Eversource Parent & Other Companies: The segment’s loss was $2.1 million against earnings of $7.3 million in the year-ago quarter.
Eversource reaffirmed its 2020 earnings guidance in the range of $3.60-$3.70 per share. The midpoint of management’s 2020 EPS guidance is $3.65, which is higher than the current Zacks Consensus Estimate of $3.62 for the period.
The company expects long-term earnings to improve 5-7% from contribution from the existing core regulated businesses.
Eversource reiterated its capital expenditure view of $14.2 billion for the 2020-2024 time period.
Eversource currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
NextEra Energy, Inc. NEE reported second-quarter 2020 adjusted earnings of $2.61 per share, which surpassed the Zacks Consensus Estimate of $2.50 by 4.4%.
Edison International EIX reported second-quarter 2020 adjusted earnings of $1.00 per share, which missed the Zacks Consensus Estimate of $1.11 by 9.9%.
Dominion Energy Inc. D reported second-quarter 2020 operating earnings of 82 cents per share, which beat the Zacks Consensus Estimate by a penny.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Edison International (EIX): Free Stock Analysis Report
Dominion Energy Inc. (D): 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.