Eversource Energy Reports Significant Earnings Decline in Q3

Eversource Energy's recent report highlights a stark decline in earnings and EPS for Q3, raising investor concerns. Despite a rise in revenue, the earnings drop could negatively affect stock prices.

Date: 05-11-2024

AI Rating: 4

Eversource Energy (ticker: ES) has demonstrated a considerable decline in earnings for Q3 2024, reporting a loss of $118.06 million. This contrasts sharply with earnings of $339.66 million in the same period last year. The negative earnings outcome indicates potential financial distress, which could lead to investor worry regarding future performance.

The earnings per share (EPS) results underscore this concern. The reported EPS for Q3 stands at -$0.33, a significant drop from $0.97 reported last year. Despite adjusted earnings coming in at $1.13 per share, which slightly exceeds analysts' projections of $1.08, the negative EPS still looms large in the minds of investors.

On a more positive note, the revenue for Eversource in Q3 increased to $3.063 billion, up from $2.791 billion in the same timeframe last year. This growth in revenue could indicate strong operational performance but may not be sufficient to offset the significant declines in net income and EPS.

Overall, the juxtaposition of declining earnings and increasing revenue presents a complex picture for investors. While revenue growth is always a positive sign, the scale of the losses in net income and EPS could lead to a reevaluation of the company’s stock value.

Stocks: ES