Latest news with #EversourceEnergy
Yahoo
3 days ago
- Business
- Yahoo
Eversource Energy (NYSE:ES) Launches US$1.2 Billion Follow-on Equity Offering
Eversource Energy recently filed a $1.2 billion follow-on equity offering, reflecting its strategy to bolster its financial position through capital raising. Over the past month, the company's shares increased by 9%, aligning with the broader market trend, which also saw an upward momentum, rising 1.7% over the last week. Eversource's dividend affirmation and steady earnings announcements complement its robust performance. These financial maneuvers likely added weight to the company's share price movement, reinforcing investor confidence alongside broader market strength, where annual earnings are expected to grow by 14%. Be aware that Eversource Energy is showing 3 risks in our investment analysis and 2 of those can't be ignored. Rare earth metals are the new gold rush. Find out which 24 stocks are leading the charge. The recent $1.2 billion equity offering by Eversource Energy strengthens its financial position, potentially enabling further investments in Massachusetts' transmission and distribution infrastructure. Although the company's shares increased by 9% in the past month, the long-term return over the last year, including both share price appreciation and dividends, was 14.73%. This is noteworthy, given that Eversource underperformed the US Electric Utilities industry, which returned 12.8% over a 1-year period, highlighting a stronger performance in a shorter timeframe. Looking ahead, this capital infusion may positively impact revenue and earnings forecasts, aligning with the anticipated 4.0% revenue growth and increased profit margins over the next three years. The follow-on equity offering could alleviate some pressure from regulatory uncertainties, inflationary pressures, and supply chain challenges, potentially aiding operational efficiency and future earnings stability. Analysts suggest a fair value price target of US$69.27 for Eversource, which is higher than the current share price of US$59.21, indicating a potential upside if their growth assumptions hold true. However, the market remains divided, with price targets ranging from US$47 to US$85. Investors should consider these various factors and assumptions when evaluating the company's long-term value. Gain insights into Eversource Energy's past trends and performance with our report on the company's historical track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ES. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
3 days ago
- Business
- Yahoo
Eversource Energy (NYSE:ES) Launches US$1.2 Billion Follow-on Equity Offering
Eversource Energy recently filed a $1.2 billion follow-on equity offering, reflecting its strategy to bolster its financial position through capital raising. Over the past month, the company's shares increased by 9%, aligning with the broader market trend, which also saw an upward momentum, rising 1.7% over the last week. Eversource's dividend affirmation and steady earnings announcements complement its robust performance. These financial maneuvers likely added weight to the company's share price movement, reinforcing investor confidence alongside broader market strength, where annual earnings are expected to grow by 14%. Be aware that Eversource Energy is showing 3 risks in our investment analysis and 2 of those can't be ignored. Rare earth metals are the new gold rush. Find out which 24 stocks are leading the charge. The recent $1.2 billion equity offering by Eversource Energy strengthens its financial position, potentially enabling further investments in Massachusetts' transmission and distribution infrastructure. Although the company's shares increased by 9% in the past month, the long-term return over the last year, including both share price appreciation and dividends, was 14.73%. This is noteworthy, given that Eversource underperformed the US Electric Utilities industry, which returned 12.8% over a 1-year period, highlighting a stronger performance in a shorter timeframe. Looking ahead, this capital infusion may positively impact revenue and earnings forecasts, aligning with the anticipated 4.0% revenue growth and increased profit margins over the next three years. The follow-on equity offering could alleviate some pressure from regulatory uncertainties, inflationary pressures, and supply chain challenges, potentially aiding operational efficiency and future earnings stability. Analysts suggest a fair value price target of US$69.27 for Eversource, which is higher than the current share price of US$59.21, indicating a potential upside if their growth assumptions hold true. However, the market remains divided, with price targets ranging from US$47 to US$85. Investors should consider these various factors and assumptions when evaluating the company's long-term value. Gain insights into Eversource Energy's past trends and performance with our report on the company's historical track record. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:ES. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
Yahoo
26-05-2025
- Business
- Yahoo
The past three years for Eversource Energy (NYSE:ES) investors has not been profitable
As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Eversource Energy (NYSE:ES) shareholders, since the share price is down 32% in the last three years, falling well short of the market return of around 44%. Contrary to the longer term story, the last month has been good for stockholders, with a share price gain of 9.7%. But this could be related to good market conditions, with stocks up around 5.3% during the period. It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. Eversource Energy became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. So it's worth looking at other metrics to try to understand the share price move. We note that the dividend seems healthy enough, so that probably doesn't explain the share price drop. Eversource Energy has maintained its top line over three years, so we doubt that has shareholders worried. So it might be worth looking at how revenue growth over time, in greater detail. The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail). Eversource Energy is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So we recommend checking out this free report showing consensus forecasts It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Eversource Energy's TSR for the last 3 years was -23%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! We're pleased to report that Eversource Energy shareholders have received a total shareholder return of 16% over one year. Of course, that includes the dividend. That certainly beats the loss of about 2% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Eversource Energy (at least 2 which make us uncomfortable) , and understanding them should be part of your investment process. We will like Eversource Energy better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-05-2025
- Business
- Yahoo
Eversource Energy (ES) Q1 2025 Earnings Call Highlights: Strategic Investments and Steady ...
GAAP and Recurring Earnings: $1.50 per share for Q1 2025, compared to $1.49 per share in Q1 2024. Transmission Earnings: Increased by $0.04 per share due to higher revenues from system investments. Electric Distribution Earnings: Increased by $0.03 per share, benefiting from grid modernization and rate mechanisms. Natural Gas Segment Earnings: Improved by $0.06 per share due to higher revenues from infrastructure investments. Parent Losses: Increased by $0.12 per share, primarily due to higher interest expenses. Five-Year Capital Plan: $24.2 billion, a 10% increase over the previous plan. Transmission Infrastructure Investments: Nearly $7 billion over the next five years. Electric Distribution Investments: Over $10 billion planned, with 60% in Massachusetts. 2025 EPS Guidance: Reaffirmed at $4.67 to $4.82 per share. Long-term EPS Growth Rate: 5% to 7% through 2029. FFO to Debt Ratio: Expected to improve significantly over 2024 levels. Warning! GuruFocus has detected 11 Warning Signs with ES. Release Date: May 02, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Eversource Energy (NYSE:ES) reaffirmed its 2025 EPS guidance and long-term EPS growth rate of 5% to 7% through 2029. The company projects an 8% rate base growth over the five-year forecast period, with additional opportunities beyond this period. Eversource Energy (NYSE:ES) is making significant progress on its AMI project in Massachusetts, which is expected to empower customers with data-driven energy usage decisions. The acquisition of the Mystic site in Everett presents a strategic opportunity for multiuse energy resource interconnection in New England. Eversource Energy (NYSE:ES) is actively collaborating with state leaders to address affordability and stabilize rates, including a 10% reduction in winter gas rates in Massachusetts. Higher utility earnings were offset by a decrease in parent and other earnings, impacting overall financial performance. The company faces challenges related to tariffs, which could potentially increase capital project costs by 3% to 6%. Eversource Energy (NYSE:ES) is dealing with regulatory uncertainties in Connecticut, including pending rate proceedings and the composition of PURA. The company has increased interest expenses and the absence of capitalized interest from its former offshore wind investment, affecting financial results. There is ongoing uncertainty regarding the timing and impact of performance-based ratemaking plans in New Hampshire and Connecticut. Q: Can you provide more details on the tariff exposure for the Revolution Wind project? A: Joseph Nolan, CEO, explained that all necessary equipment for the Revolution Wind project has been procured, with one monopile under construction expected in the fall. The substation stored in Canada is already in the U.S., so no tariff-related challenges are anticipated. Eversource has a robust warehouse operation to mitigate supply chain disruptions, minimizing tariff risks. Q: Is the Aquarion sale still on track for year-end completion, and what is the regulatory approval timeline? A: Joseph Nolan, CEO, confirmed that the Aquarion sale is expected to close in 2025, with regulatory approval anticipated by October. The transaction is straightforward, with the buyer already operating in the jurisdiction, so no issues are expected. Q: How would potential securitization of storm costs in Connecticut affect your equity needs? A: John Moreira, CFO, stated that securitization was not assumed in their financing strategy. However, if achieved, it would lead to a reassessment of their equity needs. Q: What are your thoughts on the forward composition of PURA in Connecticut and its impact on regulatory stability? A: Joseph Nolan, CEO, expressed indifference to whether PURA has three or five members but emphasized the desire for a stable regulatory climate. They are monitoring the situation and hope for a transparent regulatory environment. Q: Can you provide an update on the FFO to debt ratio and its impact on credit ratings? A: John Moreira, CFO, highlighted significant improvements in operating cash flows, driven by the recovery of previously under-recovered regulatory costs. This is expected to enhance the FFO to debt ratio by about 300 basis points, improving their credit profile. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
San Francisco Chronicle
01-05-2025
- Business
- San Francisco Chronicle
Eversource: Q1 Earnings Snapshot
SPRINGFIELD, Mass. (AP) — SPRINGFIELD, Mass. (AP) — Eversource Energy (ES) on Thursday reported first-quarter profit of $550.8 million. On a per-share basis, the Springfield, Massachusetts-based company said it had profit of $1.50. The results matched Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was also for earnings of $1.50 per share. The New England power provider posted revenue of $4.12 billion in the period.
