Eversource Energy (NYSE:ES), operator of New England’s largest energy delivery system, reported a decrease in its Q3 2023 earnings to $339.7 million ($0.97/share), down from $349.4 million ($1.00/share) in Q3 2022. The company’s earnings for the first three quarters of 2023 amounted to $846.2 million ($2.42/share), a drop from $1,084.7 million ($3.13/share) during the same period in 2022.
The slump in earnings was attributed to an after-tax impairment charge related to its offshore wind investment and additional charges. Excluding these charges, Eversource’s earnings stood at $339.7 million ($0.97/share) in Q3 2023 and $1,184.1 million ($3.38/share) for the first nine months of 2023, compared to $351.6 million ($1.01/share) in Q3 2022 and $1,097.7 million ($3.17/share) during the same period in 2022.
In response to these results, the company adjusted its 2023 non-GAAP EPS projection to between $4.30 to $4.43 per share and reiterated its long-term EPS growth rate in the upper half of the 5-7 percent range.
Despite lower overall earnings, Eversource’s transmission segment saw increased earnings of $160.3 million in Q3 2023 and $476.4 million in the first nine months of 2023, up from earnings of $155.8 million in Q3 2022 and $455.8 million during the same period in 2022.
The electric distribution segment was negatively impacted by a rate design change, higher storm-related costs, interest expense, and operations and maintenance (O&M) costs, although this was offset by higher distribution revenues. The natural gas distribution segment reported a loss of $33.7 million in Q3 2023 but earned $148.2 million in the first nine months of 2023, with higher depreciation and income taxes impacting results.
Eversource Energy’s water segment reported earnings of $16.6 million in Q3 2023 and $27.4 million in the first nine months of 2023. The company’s parent and other companies improved their financial performance due to a lower effective tax rate, earning $23.2 million in Q3 2023 and $27.8 million in the first nine months of 2023.
Despite the mixed financial results, Eversource’s CEO Joe Nolan praised the company’s nearly 10,000 employees for their strong operational performance, contributing to top-decile reliability metrics among peers in the electric industry. The company was also named the top energy efficiency provider in the country according to the 2023 Utility Energy Efficiency Scorecard. Eversource Energy serves approximately 4.4 million customers across Connecticut, Massachusetts, and New Hampshire.
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Eversource Energy’s financial performance can be further illuminated by key metrics from InvestingPro. The company’s market cap stands at $19.35B USD, with a P/E ratio of 16.49, indicating a relatively moderate valuation. As of Q2 2023, the company’s revenue was $12670.37M USD, reflecting a growth of 15.62% over the last twelve months.
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InvestingPro Tips suggest that Eversource operates under a significant debt burden and has seen revenue growth slowing down recently. However, the company has maintained its dividend payments for 25 consecutive years, a positive sign for income-focused investors. Additionally, despite the stock trading near its 52-week low, analysts predict the company will be profitable this year.
InvestingPro offers numerous additional tips and data points for investors seeking comprehensive insights into Eversource Energy’s performance. These insights can aid investors in making informed decisions about the company’s potential for growth and profitability.
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