Eversource Energy (NYSE:ES) is scheduled to report third-quarter 2017 results before the opening bell on Nov 2. Lastquarter, the company reported positive earnings surprise of 5.88%.
Let’s see how things are shaping prior tothis announcement.
Factors to Consider
Eversource distributes electricity to retail customers through electric distribution segment that contributed 52.8% to the bottom line in second-quarter 2017. The company’s substantial gain last quarter can be attributed to low operations and maintenance (O&M) costs and higher demand revenues. Notably, the Zacks Consensus Estimate for revenues is currently pegged at $2,076 million, reflecting an increase of 17.8% sequentially. Additionally, the revenues also reflect a year-over-year increase of 1.8% from the prior-year quarter.
Eversource successfully served approximately 3.7 million customers in Connecticut, Massachusetts and New Hampshire during second-quarter 2017 compared with3.6 million in last year’s quarter. Notably, we can expect the company to continue to expand with its existing customers and also benefit from improved demand in this quarter as well.
The company continued to make progress on several of its transmission projects in the third quarter. However, thedecision to drop its Access Northeast Pipeline plan due to regulatory uncertainty, is likely tohave an adverse impact on growth prospects.
Earnings Whispers
Our proven model does not conclusively show that Eversource is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: Eversource has an Earnings ESP of -0.55%. This is because the Most Accurate estimate is pegged at 83 cents, wider than the Zacks Consensus Estimate of 84 cents.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank:Eversource carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Eversource Energy Price and EPS Surprise
Stocks to Consider
Eversource does not possess the right combination to come out with an earnings surprise this season. Instead, here are a few players from the space that have the right combination of elements to post an earnings beat this quarter.
NRG Energy, Inc. (NYSE:NRG) has an Earnings ESP of +7.92%. It carries Zacks Rank #3andis expected to report third-quarter 2017 earnings on Nov 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Exelon Corporation (NYSE:EXC) has an Earnings ESP of +0.48%. It carries Zacks Rank #3andis expected to report third-quarter 2017 earnings on Nov 2.
Fortis Inc. (TO:FTS) has an Earnings ESP of +3.60%. It carries Zacks Rank #3andis expected to report third-quarter 2017 earnings on Nov 3.
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Exelon Corporation (EXC): Free Stock Analysis Report
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Eversource Energy (ES): Free Stock Analysis Report
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