Springfield, Massachusetts-based Eversource Energy (ES) operates as a public utility holding company and engages in the energy delivery business. With a market cap of $22.9 billion, Eversource operates through Electric Distribution, Electric Transmission, Natural Gas Distribution, and Water Distribution segments. The utility giant is expected to release its Q3 earnings on Monday, Nov. 4.
Ahead of the event, analysts expect Eversource Energy to report a profit of $0.96 per share, down 1% from $0.97 per share reported in the year-ago quarter. The company has surpassed or matched Wall Street’s adjusted EPS projections twice over the past four quarters while missing on two other occasions. Its adjusted EPS for the last reported quarter dipped 5% year-over-year to $0.95, matching Wall Street’s expectations.
For fiscal 2024, analysts expect Eversource Energy to report an adjusted EPS of $4.57, up 5.3% from $4.34 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 5% year-over-year to $4.80.
ES stock has gained 5.3% on a YTD basis, substantially lagging behind the S&P 500 Index’s ($SPX) 22.5% gains and the Utilities Select Sector SPDR Fund’s (XLU) 28.7% returns during the same time frame.
Shares of ES rose 1.8% in the trading session after the release of its Q2 earnings on Jul. 31. The company reported a massive jump in net income to shareholders from $15.4 million in the year-ago quarter to $335.3 million, however, this surge was due to the $401 million impairment cost incurred on Eversource’s Offshore Wind Investment in the year-ago quarter leading to a base effect. The company observed a 3.6% decline in operating revenues to $2.5 billion, falling short of Wall Street’s expectations.
Although the company saw a 7.5% growth in operating income to $602.5 million, it was due to a 47.7% drop in amortization. Nevertheless, its adjusted EPS of $0.95 was in line with analyst expectations which cushioned investor confidence.
The consensus opinion on ES stock is moderately bullish, with an overall “Moderate Buy” rating. Of the 18 analysts covering the stock, eight recommend a “Strong Buy,” and 10 suggest a “Hold” rating. The mean price target of $72.43 represents a potential upside of 11.4% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
