Eversource Energy Q3 profit falls on higher costs
Overview
US utility's preliminary Q3 EPS fell yr/yr to $0.92 from $0.99
Q3 operating revenue declined yr/yr
Company cites higher costs and regulatory charges as factors in lower results
Outlook
Company raises 2026 non-GAAP recurring EPS guidance to $4.62-$4.70, midpoint $4.66
Eversource reaffirms cumulative long-term EPS growth rate of 5-7% through 2030
Company expects annual earnings growth toward upper half of guidance by 2028
Result Drivers
REGULATORY AND INTEREST COSTS - Transmission segment earnings were reduced by a lower allowed return on equity and higher interest expense
STORM COSTS AND EXPENSES - Electric distribution results were negatively affected by disallowed storm costs, higher depreciation, interest, and property taxes, partly offset by higher base distribution rates
SEASONAL RATE DESIGN - Natural gas distribution segment saw lower Q3 results due to a change in seasonal rate design and higher depreciation expense
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $0.92 |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 10 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the electric utilities peer group is "buy."
Wall Street's median 12-month price target for Eversource Energy is $73.11, about 5.9% above its November 3 closing price of $69.03
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 15 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)