Eversource Energy ES reported second-quarter 2015 operating earnings of 66 cents per share, beating the Zacks Consensus Estimate of 56 cents by 17.9%.
The quarterly figure also surpassed the year-ago earnings of 42 cents per share by 57.1%. The improvement was driven by strong performance at its Electric Distribution and Generation, Electric Transmission, and Natural Gas Distribution segments.
Eversource Energy’s GAAP earnings were 65 cents per share in the second quarter of 2015, which compared favorably with 40 cents per share in the year-ago quarter. The difference between GAAP and pro forma numbers was due to a one-time integration cost of $2.1 million.
Total Revenue
Eversource Energy’s second-quarter revenues of $1,817.1 million was above both the Zacks Consensus Estimate of $1,747 million by 4% and the year-ago level of $1,677.6 million by 8.3%.
Quarterly Highlights
Operating expenses incurred in the reported quarter increased 1.5% year over year to $1,405 million due to higher purchased power, fuel and transmission expenses, depreciation, and taxes other than income taxes.
Operating income in second-quarter 2015 surged 40.1% to $412.0 million from $294.0 million a year ago.
Segmental Performance
Electric Distribution and Generation: Earnings in the quarter increased 45.8% to $121.6 million, primarily due to higher distribution revenues, and lower operations and maintenance expenses.
Electric Transmission: Segment earnings in the quarter soared 83.1% to $80.4 million. The increase was attributable to the absence of a second-quarter 2014 charge in 2015 and higher investment in Eversource Energy’s transmission system
Natural Gas Distribution: This segment generated earnings of $5.3 million during the quarter, up 1.7% compared with $2 million in the second quarter of 2014.
Parent & Other Companies: This segment earned $2.3 million in the second quarter of 2015, down 11.5% compared with $2.6 million in the second quarter of 2014.
Financial Position
As of Jun 30, 2015, Eversource Energy had $36.5 million in cash and cash equivalents compared with $38.7 million as of Dec 31, 2014.
Long-term debt (excluding current portion) was $8,689.6 millionas of Jun 30, 2015, compared with $8,606 million as of Dec 31, 2014.
Net cash flow from operating activities in the first half of 2015 was $855.6 million, down 4.6% from $896.7 million in the year-ago period.
Guidance
Eversource Energy reiterated its guidance for 2015 earnings between $2.75 and $2.90 per share, and long-term earnings growth rateof 6% to 8%.
Zacks Rank
Currently, Eversource Energy carries a Zacks Rank #2 (Buy). Other favorable stocks in the utility space include EmpresaNacional de Electricidad S.A. EOC and Enersis S.A. ENI, both sporting a Zacks Rank #1 (Strong Buy), and American Electric Power Co., Inc. AEP, holding the same rank as Eversource Energy.
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