Eversource Energy ES is scheduled to release fourth-quarter 2024 results on Feb. 11, after market close. The company delivered an earnings surprise of 8.7% in the last reported quarter.

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Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Key Factors That Might Have Impacted ES' Q4 Performance

The bottom line is expected to have benefited from the completed sale of its 50% interest in the 132-megawatt (MW) South Fork Wind project and the 704-MW Revolution Wind project to Global Infrastructure Partners in September 2024. The company now focuses on being a pure play regulated utility with tremendous low-risk regulated growth opportunities to enable clean energy transition for customers.

ES’ quarterly earnings are also likely to benefit from new rates in ES’ Massachusetts region, which became effective in November 2024.

The bottom line is also expected to have gained from increased investments, which should have enhanced service reliability. Lower operation and maintenance expenses and reduced effective tax rates are likely to have had a positive impact on quarterly earnings.

However, higher depreciation and property taxes from increased investments are anticipated to have negatively impacted the company’s overall quarterly performance.

Q4 Expectations

The Zacks Consensus Estimate for earnings is pegged at 99 cents per share, indicating a year-over-year increase of 4.2%.

The Zacks Consensus Estimate for revenues is pinned at $2.81 billion, implying a year-over-year improvement of 4.4%.

What Our Quantitative Model Predicts

Our proven model does not predict an earnings beat for Eversource Energy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
 

Earnings ESP: The company’s Earnings ESP is -0.17%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Eversource Energy carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following players from the same industry as these have the right combination of elements to post an earnings beat this reporting cycle.

Dominion Energy D is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 12. It has an Earnings ESP of +4.32% and a Zacks Rank #3 at present.

D’s long-term (three to five years) earnings growth rate is 13.59%. The Zacks Consensus Estimate for earnings is pinned at 54 cents per share, which implies a year-over-year increase of 86.2%.

OGE Energy OGE is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 19. It has an Earnings ESP of +2.41% and a Zacks Rank #2 at present.

OGE’s long-term earnings growth rate is 5.92%. The Zacks Consensus Estimate for earnings is pinned at 48 cents per share, which implies a year-over-year increase of 100%.

CenterPoint Energy CNP is likely to come up with an earnings beat when it reports fourth-quarter results on Feb. 20. It has an Earnings ESP of +0.63% and a Zacks Rank #2 at present.

CNP’s long-term earnings growth rate is 7.12%. The Zacks Consensus Estimate for earnings is pinned at 40 cents per share, which implies a year-over-year increase of 25%.

 

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Eversource Energy (ES) : Free Stock Analysis Report

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