Eversource Energy (ES) Q4 Earnings: What’s in the Cards?

Eversource Energy ES is expected to report fourth-quarter 2016 results on Feb 2.

Last quarter, the company reported a positive earnings surprise of 3.75%. Let’s see how things are shaping up for this announcement.

Factors at Play

Above-average temperatures in its service territories – Connecticut, New Hampshire and Massachusetts – in the fourth quarter are expected to hit the topline at Eversource Energy. Further, higher depreciation and property taxes resulting from the company’s ongoing investments in its distribution system are likely to lower earnings in the to-be reported quarter.

However, higher transmission rate base on account of continued investment in the New England power grid will boost the bottom line in the fourth quarter.

Earnings Whispers

Our proven model does not conclusively show that Eversource Energy is likely to beat earnings 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) to be able to beat consensus estimates. However, that is not the case here, as you will see below.

Zacks ESP: Both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 74 cents, resulting in an Earnings ESP of 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Although Eversource Energy’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes surprise prediction difficult.

Note that 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.

Stocks to Consider

Here are a few stocks in the utility space worth considering as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Portland General Electric Company POR is slated to report earnings on Feb 17. It is has an Earnings ESP of +1.56% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Exelon Corporation EXC has an Earnings ESP of +2.27% and a Zacks Rank #2. It is expected to release its quarterly numbers on Feb 8.

Pinnacle West Capital Corporation PNW has an Earnings ESP of +4.08% and a Zacks Rank #2. It is slated to report earnings on Feb 24.

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