Eversource Energy (NYSE: ES) has reported the adjusted earnings per share of 72 cents in the fourth quarter 2016 ended 31st December, missing the analysts’ estimates for the adjusted earnings per share of 75 cents. On the other hand, Eversource Energy had reported the adjusted revenue growth of 23.2 percent to $1.79 billion in the fourth quarter 2016, beating the analysts’ estimates for revenue of $1.75 billion. As a result, the stock rose 0.9% (as of 10:56 AM EST on Feb 22nd, 2017; Source: Google finance)
For FY 17, Eversource Energy expects the earnings per share in the range of $3.05 to $3.20 compared to the analysts’ expectation for earnings per share of $3.15. Eversource Energy expects the long-term earnings per share growth through 2020 of between 5 percent and 7 percent.
Meanwhile, the Tree-trimming work for ES near power lines in Tolland, Newington, and Southington is part of the 2017 schedule. The work is part of an investment of $75 million to prune trees that, threaten the electric system and the reliable delivery of power for customers. 2017 tree-trimming budget is up by 10 percent over the $68 million the utility spent last year. All but 18 of the 149 towns ES caters will see some kind of tree trimming going on. ES will be trimming trees along more than 4,200 miles of overhead lines around the state in 2017. Four towns Wilton, East Hampton, Stonington, and Stamford will have tree trimming done at more than 100 miles of electric lines in each of those communities. Trimming is already is underway in Bethany, Branford, Oxford, Seymour, and Woodbridge. ES has 17,000 miles of electric lines.
On the other hand, Eversource Energy has filed a $400 million grid modernization plan with the state regulators, proposing significant investment in the energy storage, electric vehicle infrastructure as well as an extensive grid management and resource integration system. As per the new utility, the new rates will go towards a $60 million revenue gap for ES’s Eastern Massachusetts service area, adding about 7%, or $8.45, to the average monthly bill. The proposed rate increase is based on a test year ending June 30th, 2016, and the new rates could go into effect in January 2018.
Eversource Energy stock has risen 3.97% in a year (source: Google Finance). According to tipranks.com, 3 analysts has covered the stock while recommending a “Moderate Buy”. ES has an average price target of $57.67, which is a further upside of 1.46%.