What's In The Cards For Eversource (Es) In Q3 Earnings?
Zacks Investment Research | Nov 01, 2017 08:32AM ET
Eversource Energy (NYSE:ES) is scheduled to report third-quarter 2017 results before the opening bell on Nov 2. Lastquarter, the company reported positive earnings surprise of 5.88%.
Let’s see how things are shaping prior tothis announcement.
Factors to Consider
Eversource distributes electricity to retail customers through electric distribution segment that contributed 52.8% to the bottom line in second-quarter 2017. The company’s substantial gain last quarter can be attributed to low operations and maintenance (O&M) costs and higher demand revenues. Notably, the Zacks Consensus Estimate for revenues is currently pegged at $2,076 million, reflecting an increase of 17.8% sequentially. Additionally, the revenues also reflect a year-over-year increase of 1.8% from the prior-year quarter.
Eversource successfully served approximately 3.7 million customers in Connecticut, Massachusetts and New Hampshire during second-quarter 2017 compared with3.6 million in last year’s quarter. Notably, we can expect the company to continue to expand with its existing customers and also benefit from improved demand in this quarter as well.
The company continued to make progress on several of its transmission projects in the third quarter. However, thedecision to drop its Access Northeast Pipeline plan due to regulatory uncertainty, is likely tohave an adverse impact on growth prospects.
Earnings Whispers
Our proven model does not conclusively show that Eversource is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP Filter .
Zacks Rank:Eversource carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Eversource Energy Price and EPS Surprise
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