Eversource Energy (ES), a public utility holding company with a market cap of $21.6 billion, operates in the energy delivery sector, engaging in the transmission and distribution of electricity, natural gas, and water. The Springfield, Massachusetts-based company is expected to announce its fiscal Q2 earnings results after the market closes on Wednesday, Jul. 31.
Ahead of the event, analysts expect ES to report a profit of $0.98 per share, down 2% from $1.00 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. In the most recent quarter, the company reported an EPS of $1.49, exceeding estimates by a 2.8% margin.
For fiscal 2024, analysts expect ES to report an EPS of $4.53, up 4.4% from $4.34 in fiscal 2023. Looking ahead to fiscal 2025, EPS is anticipated to grow 5.3% annually to $4.77.
Over the past 52 weeks, ES has declined 15.6%, underperforming both the S&P 500 Index's ($SPX) 21.7% rise and the S&P 500 Utilities Sector SPDR's (XLU) 7% increase over the same period.
Despite reporting a significant loss and impairment charges, shares of Eversource Energy surged 4.7% following its Q4 result on Feb. 13 due to investor optimism about the company's plans to sell stakes in offshore wind projects and explore the sale of its water distribution unit, which were seen as efforts to reduce equity needs and enhance regulatory diversity.
In addition, the stock rose on May 1 due to strong Q1 earnings and reaffirmed 2024 earnings projections. However, the stock fell the next day due to concerns over increased expenses and significant losses in the Parent and Other Companies segment.
Analysts' consensus view on Eversource Energy stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 18 analysts covering the stock, eight recommend a "Strong Buy," and 10 give a "Hold" rating. This configuration has remained relatively steady over the past three months. The average analyst price target for ES is $66.07, suggesting a potential upside of just 7.6% from the current levels.
On the date of publication, Sohini Mondal 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.
