Eversource Energy (ES) Q3 Earnings In Line, Revenues Miss

Zacks

Eversource Energy ES reported third-quarter 2015 operating earnings of 75 cents per share, on par with the Zacks Consensus Estimate and the year-ago figure.

Eversource Energy’s GAAP earnings were 74 cents per share in the third quarter of 2015, flat with the year-ago quarter. The one-cent difference between GAAP and pro forma numbers was due to a one-time integration cost of $1.7 million.

Total Revenues

Eversource Energy’s third-quarter revenues of $1,933 million marginally lagged the Zacks Consensus Estimate of $1,941 million but increased from the year-ago level of $1,893 million by 2.1%.

Quarterly Highlights

Operating expenses increased approximately 1% year over year to $1,464 million due to higher depreciation, energy efficiency programs and taxes other than income taxes.

Operating income in third-quarter 2015 increased 6.3% to $469.2 million from $441 million a year ago.

Segmental Performance

Electric Distribution and Generation: Earnings in the quarter increased 9.3% to $167.7 million, primarily due to higher distribution revenues and lower operations and maintenance expenses.

Electric Transmission: Segment earnings in the quarter decreased 11.5% to $78 million. The decrease was attributable to the absence of third-quarter 2014 state tax benefits.

Natural Gas Distribution: This segment reported a loss of $3.5 million, narrower than the year-ago loss of $9.9 million owing to higher revenues and a lower effective tax rate.

Parent & Other Companies: This segment reported a loss of $4.6 million in the third quarter of 2015, as against year-ago earnings of $6 million.

Financial Position

As of Sep 30, 2015, Eversource Energy had $35.8 million in cash and cash equivalents compared with $38.7 million as of Dec 31, 2014.

Long-term debt (excluding current portion) was $8,757.5 million as of Sep 30, 2015, compared with $8,606 million as of Dec 31, 2014.

Net cash flow from operating activities in the first nine months of 2015 was $1,341.6 million, down 4.4% from $1,404 million in the year-ago period.

Guidance

Eversource Energy narrowed its guidance range for 2015 earnings from $2.75–$2.90 per share to $2.80–$2.85 per share. The company reiterated its long-term earnings growth rate of 6% to 8%.

Upcoming Peer Releases

Apache Corp. APA plans to report third-quarter 2015 results on Nov 5, 2015. The Zacks Consensus Estimate is at a loss of 38 cents.

Duke Energy Corp. DUK plans to report third-quarter 2015 results on Nov 5, 2015. The Zacks Consensus Estimate is $1.52.

Alliant Energy Corp. LNT plans to report third-quarter 2015 results on Nov 5, 2015. The Zacks Consensus Estimate stands at $1.58.

Zacks Rank

Currently, Eversource Energy carries a Zacks Rank #2 (Buy).

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