Published on 29 Apr 2024 on Zacks via Yahoo Finance
Eversource Energy ES is scheduled to release first-quarter 2024 results on May 1, after market close. The company delivered a negative earnings surprise of 2.1% in the last reported quarter.Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
Per the 2022 NSTAR Electric rate review, the first base distribution revenue increase of the performance-based rate plan, totaling $105 million, was effective from Jan 1, 2024. This is likely to have had a favorable impact on earnings.Eversource Energy’s first-quarter earnings are expected to have gained from increased investments in electric distribution and transmission and natural gas distribution, which have enhanced service reliability. Lower operation and maintenance expenses and lower effective tax rate are likely to have had a positive impact on earnings.However, higher depreciation and property taxes from increased investment and higher interest expense are likely to have adversely impacted Eversource Energy’s performance in the to-be-reported quarter.