It has been about a month since the last earnings report for Eversource Energy (ES). Shares have added about 4.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Eversource due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
ES Q1 Earnings & Revenues Beat Estimates, Five-Year Capex Plan Raised
Eversource Energy reported first-quarter 2026 adjusted earnings of $1.73 per share, which topped the Zacks Consensus Estimate of $1.59 by 8.81%. The bottom line increased 15.33% from the year-ago figure of $1.50.
Total Revenues of ES
Revenues of $4.50 billion beat the Zacks Consensus Estimate of $4.21 billion by 6.88%. Total revenues also increased 9.37% from the year-ago figure of $4.12 billion.
Highlights of ES’ Q1 Results
Total operating expenses were $3.43 billion, up 7.40% year over year. The increase was due to higher purchased power, purchased natural gas and transmission costs, increased operations and maintenance expenses, higher Energy Efficiency Programs spending and a rise in Taxes Other Than Income Taxes expenses.
Operating income totaled $1.08 billion, up 16.17% year over year.
Interest expenses amounted to $365.3 million, 21.41% higher than the prior-year level.
ES’ Segmental Performance
Electric Transmission: Earnings totaled $224.3 million, up 12.49% year over year. This was driven by a higher level of investment in Eversource Energy’s electric transmission system and an increase in non-refundable revenues.
Electric Distribution: Earnings amounted to $202.8 million, up 7.64% year over year. This was driven by higher revenues from base distribution rate hikes at Eversource's New Hampshire and Massachusetts electric businesses and ongoing investments in its distribution system.
Natural Gas Distribution: This segment reported earnings of $295.3 million, up 35.21% from $218.4 million in the year-ago quarter. This was due to the implementation of the new base distribution rate hike at all of Eversource’s gas businesses, effective Nov. 1, 2025.
Water Distribution: Earnings amounted to $6.4 million, up 78% from $3.6million in the year-ago quarter, driven by higher revenue growth.
Eversource Parent & Other Companies: The segment reported a loss of $78.1 million, wider than the year-ago quarter’s reported loss of $59 million. This was due to higher interest expense and an increased effective tax rate.
ES’ Guidance
Eversource Energy expects 2026 earnings in the range of $4.57-$4.72 per share. The Zacks Consensus Estimate for the same is pinned at $4.70, which is near the higher end of the company’s guided range. ES expects the long-term EPS growth rate to be between 5% and 7%, supported by regulatory and strategic outcomes in 2026
The company expects cash from operations of $24.2-$24.7 billion during 2026-2030.
Eversource Energy expects to invest $27.8 billion in 2026-2030. This includes $1.3 billion in capital investment for Eversource’s water business. This current five-year capital expenditure plan reflects a $2.3 billion increase from the previous five-year plan.
The company expects to distribute dividends of $6.7-$7.2 billion during 2026-2030.
How Have Estimates Been Moving Since Then?
Investors have witnessed a flat trend in estimates revision over the past two months.
VGM Scores
At this time, Eversource has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. However, the stock was allocated a grade of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Eversource has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Eversource belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, FirstEnergy (FE), has gained 1% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
FirstEnergy reported revenues of $4.2 billion in the last reported quarter, representing a year-over-year change of +11.6%. EPS of $0.72 for the same period compares with $0.67 a year ago.
For the current quarter, FirstEnergy is expected to post earnings of $0.55 per share, indicating a change of +5.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for FirstEnergy. Also, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).