Eversource Energy ES delivered second-quarter 2018 operating earnings of 76 cents per share, surpassing the Zacks Consensus Estimate of 75 cents by 1.3%. The bottom line also improved 5.6% year over year.
Total Revenues
Eversource’s second-quarter revenues of $1,854 million topped the Zacks Consensus Estimate of $1,813 million by 2.3% and also improved 5.2% from the year-ago figure of $1,763 million.
Highlights of the Release
In the reported quarter, natural gas distribution increased 11.3% to 18,932 million cubic feet of gas.
Operating expenses increased nearly 11.3% year over year to $1,462.5 million, primarily owing to higher expenses from purchased power, fuel and transmission plus depreciation expenses.
Operating income was down 12.7% to $391.4 million and interest expenses were up 17.8% year over year to $126.4 million.
Net income in the quarter under review was $244.7 million, up 5.2% from the year-ago period’s tally.
Segmental Performance
Electric Distribution: Earnings from this segment were down 16.9% to $101.3 million. This downside was on account of divestiture of New Hampshire generation assets, higher property tax expense and the timing of electric revenues.
Electric Transmission: This segmental bottom line increased 16.9% year over year to $112.7 million. The upside was primarily attributable to higher level of investment in Eversource’s electric transmission system.
Natural Gas Distribution: Here, the earnings improved 11.1% to $5 million. The year-over-year rise was primarily due to cold weather in 2018.
Water Distribution: Eversource Energy’s water distribution segment, created after Eversource acquired Aquarion Water Company in December 2017, earned $7.2 million in second-quarter 2018.
Eversource Parent & Other Companies: The segment earned $16.6 million compared with the year-ago quarter’s bottom lines of $7.9 million.
Guidance
Eversource reaffirmed 2018 earnings guidance in the range of $3.20-$3.30. Long-term earnings growth is projected in the 5-7% band.
Eversource Energy Price, Consensus and EPS Surprise
Eversource Energy Price, Consensus and EPS Surprise | Eversource Energy Quote
Zacks Rank
Eversource carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Ameren Corporation AEE is scheduled to report second-quarter 2018 results on Aug 3. The Zacks Consensus Estimate for earnings the quarter to be reported is pegged at 79 cents.
CenterPoint Energy, Inc. CNP is scheduled to report second-quarter 2018 results on Aug 3. The consensus estimate for the to-be-reported quarter’s bottom line stands at 32 cents.
Exelon Corporation EXC is scheduled to report second-quarter 2018 results on Aug 2. The consensus mark for earnings in the impending quarterly results is 61 cents.
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