Eversource Energy Outperforms Earnings Expectations in Q1

Eversource Energy, a notable player in the utility sector, has reported a positive earnings surprise in the first quarter of 2024. The company announced earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.45 per share. This performance marks an improvement from the $1.41 per share recorded in the same quarter of the previous year. The announced earnings have been adjusted to exclude one-time items, highlighting the company's operational strength.

Quarterly Earnings Overview

The latest earnings release reveals a surprise of 2.76% over expectations, marking a rebound from the preceding quarter when Eversource reported earnings that were slightly below predictions. This trend demonstrates the company's ability to exceed earnings estimates in half of the recent four quarters.

Revenue Insights

Despite the uptick in earnings, Eversource's revenues did not meet analysts’ forecasts. An approximate revenue of $3.33 billion was disclosed for the quarter ending March 2024, which was 19.52% below the expected figure. When compared to the previous year's revenue of $3.8 billion, it's evident that Eversource has been on a declining trend and has not beaten revenue estimates in the last four quarters.

The Road Ahead for Eversource

Investors and analysts are keenly observing how these financial figures might influence Eversource's stock value moving forward. The company's standing and potential forecasts, particularly in earnings expectation revisions, could hint at the direction the stock is headed. Eversource shares have dipped by about 1.8% since the beginning of the year, trailing behind the S&P 500's gain of 5.6%.

Earnings Outlook and Industry Rank

Looking towards the future, Eversource presents a favorable earnings estimate, securing a Zacks Rank #2 (Buy), which suggests potential market outperformance in the near term. This optimistic view is supported by recent positive estimate revisions ahead of the earnings announcement. For the upcoming quarter, the consensus estimates are set at $1 per share in earnings on revenues of $3.11 billion, while projections for the current fiscal year are at $4.51 per share on revenues amounting to $12.87 billion.

The performance of stocks in the utility industry, including Eversource, can be influenced by the sector's health. The Zacks Utility - Electric Power industry is ranked well, landing in the top 31% of more than 250 industries, which bodes well for its constituents.

Peer Comparison

In comparison, Dominion Energy, another industry player, has yet to report its quarter results. Expected estimates for Dominion Energy reveal a forecast of $0.51 per share, contrasting a significant decrease from the previous year. Nevertheless, the consensus estimate has seen an optimistic revision in the last month. Dominion's anticipated revenues, however, are pointing towards a sharp year-over-year drop.

Eversource, Earnings, Revenue