Earnings Alert: Eversource Energy (NYSE: ES)

On Monday, Shares of Eversource Energy (NYSE: ES) gained 0.99% to $60.31. The stock opened its trade at $59.76 and after floating in a price range of $59.72 to $60.44; the stock grabbed the investor’s attention and traded 1.56M shares as compared to its average daily volume of 1.97M shares. The stock’s institutional ownership stands at 76.40%.

Eversource Energy (ES) recently stated first quarter 2018 earnings of $269.50M, or $0.85 per share, contrast with earnings of $259.50M, or $0.82 per share, in the first quarter of 2017. Also, the Eversource Energy Board of Trustees declared a regular quarterly dividend of $0.505 per share, payable June 29, 2018 to shareholders of record as of May 24, 2018. Moreover, the company recently reaffirmed its 2018 earnings per share (EPS) guidance of $3.20 to $3.30 and its projected 5 to 7 percent long-term EPS growth rate.

Electric Transmission:

Eversource Energy’s transmission segment earned $107.40M in the first quarter of 2018, contrast with earnings of $94.20M in the first quarter of 2017. Higher transmission earnings were mainly because of Eversource Energy’s additional investment in its electric transmission system.

Electric Distribution:

Eversource Energy’s electric distribution and generation segment earned $104.20M in the first quarter of 2018, contrast with earnings of $114.10M in the first quarter of 2017. Lower results were due mainly to the sale of generation assets, as well as higher depreciation, property tax, operations and maintenance expense, partially offset by higher electric distribution margins. Higher operations and maintenance expense was driven mainly by higher storm-related costs in 2018.

Natural Gas Distribution:

Eversource Energy’s natural gas distribution segment earned $57.80M in the first quarter of 2018, contrast with earnings of $50.80M in the first quarter of 2017. Stronger sales were partially offset by higher operations and maintenance expense.

Water Distribution:

Eversource Energy’s water distribution segment, which was created when Eversource attained Aquarion Water Company in December 2017, earned $1.50M in the first quarter of 2018. Water distribution earnings are heavily weighted in the warmer months of the year, the opposite of natural gas distribution earnings.

Parent and other companies:

Parent and other companies had a net loss of $1.40M in the first quarter of 2018, contrast with earnings of $0.40M in the first quarter of 2017, due mainly to higher interest expense.

ES has a market value of $19.14B while its EPS was booked as $3.14 in the last 12 months. The stock has 317.40M shares outstanding. In the profitability analysis, the company has profit margin of 12.60%. Beta value of the company was 0.29; beta is used to measure riskiness of the security. Analyst recommendation for this stock stands at 2.20.

Eric Clapton

Eric Clapton

I am Eric Clapton and has over 14 years experience in the financial services industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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