Eversource (ES) Q3 Earnings Miss Estimates, Reaffirms View
Zacks Investment Research | Nov 01, 2017 09:59PM ET
Eversource Energy (NYSE:ES) reported third-quarter 2017 operating earnings of 82 cents per share, missing the Zacks Consensus Estimate of 84 cents by 2.4%. Reported earnings were also down by 1.2% from the year-ago quarter figure of 83 cents.
Total Revenues
Eversource’s third-quarter revenues of $1,988.5 million missed the Zacks Consensus Estimate of $2,076 million by 4.2% and decreased 2.5% from the year-ago figure of $2,039.7 million. Lower third-quarter revenues can be attributed to the much milder summer temperatures in 2017, compared with 2016.
Highlights of the Release
In the reported quarter, total electric distribution decreased 8.1% year over year to 14,096 Gigawatt hours, and natural gas distribution increased 5.5% to 11,525 million cubic feet of gas.
Operating expenses decreased nearly 2.9% year over year to $1,485.9 million, primarily owing to lower expenses incurred for purchased power, fuel and transmission as well as operations and maintenance activities.
Operating income was down 1.4% to $502.6 million from $509.9 million a year ago.
In the reported quarter, interest expense was $108.7 million, up 8.8% year over year.
Net income in the reported quarter was $260.4 million, down 1.8% year over year.
Segmental Performance
Electric Distribution and Generation: Segment earnings were down 7.5% to $157.4 million primarily due to impact on sales of milder summer weather.
Electric Transmission: Segment earnings advanced approximately 12% to $99 million backed by increased level of investment in Eversource’s transmission system.
Natural Gas Distribution: Segment incurred a loss of $6.2 million compared with loss of $7 million in the year-ago quarter. Improved third-quarter 2017 results were primarily due to lower non-tracked operations and maintenance expense.
Eversource Parent & Other Companies: The segment earned $10.2 million, lower than the year-ago earnings of $13.8 million.
Eversource Energy Price, Consensus and EPS Surprise
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