Eversource (ES) Q1 Earnings Miss, Revenues Beat Estimates

Eversource Energy (NYSE:ES) reported first-quarter 2017 operating earnings of 82 cents per share, lagging the Zacks Consensus Estimate of 83 cents by a penny. However, the quarterly earnings were up 6.5% from the year-ago quarter figure of 77 cents.

The year-over-year increase in earnings was due to higher transmission, electric and natural gas revenues compared with the previous-year quarter.

Total Revenue

Eversource’s first-quarter revenues of $2,105.1 million surpassed the Zacks Consensus Estimate of $2,099 million by 0.3% and improved 2.4% from the year-ago figure of $2,055.6 million.

Highlights of the Release

In the reported quarter, total electric distribution decreased 0.4% year over year to 13,172 Gigawatt hours, while natural gas distribution increased 4.6% to 41,146 million cubic feet of gas.

Operating expenses increased nearly 1.8% year over year to $1,596.2 million, primarily due to higher operation and maintenance expenses and higher expenditure on energy efficiency programs.

Operating income was up 4.2% to $509.1 million from $488.6 million a year ago.

In the reported quarter, interest expense was $103.4 million, up 5.3% year over year.

Net income in the reported quarter was $259.4 million, up 6.3% year over year.

Segmental Performance

Electric Distribution and Generation: Segment earnings were up 5.3% to $114.1 million primarily due to higher distribution revenues and lower property tax expense.

Electric Transmission: Segment earnings surged 9.9% to $94.2 million backed by higher earnings from transmission facilities.

Natural Gas Distribution: Segment earnings were $50.8 million compared with $50.9 million in the year ago quarter. Stronger sales in the reported quarter were offset by higher depreciation, property tax and interest expense.

Eversource Parent & Other Companies: The segment earned $0.4 million, while in the year-ago period it had incurred a loss of $0.8 million.

Guidance

Eversource reaffirmed 2017 earnings per share in the range of $3.05–$3.20. Long-term earnings growth is projected in the range of 5–7% through 2020, considering 2016 earnings as base.

Zacks Rank

Eversource currently carries a Zacks Rank #4 (Sell).

Peer Releases

NiSource Inc. (NYSE:NI) , a Zacks Rank #2 (Buy) stock, reported first-quarter 2017 adjusted earnings of 65 cents per share, in line with the Zacks Consensus Estimate. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Alliant Energy Corporation (NYSE:LNT) , another Zacks Rank #2 stock, reported first-quarter 2017 operating earnings of 43 cents per share, lagging the Zacks Consensus Estimate of 45 cents by 4.4%.

Pinnacle West Capital Corporation (NYSE:PNW) , a Zacks Rank #3 (Hold) stock, reported first-quarter 2017 operating earnings of 25 cents per share, beating the Zacks Consensus Estimate of 15 cents by 40.0%.

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