Eversource Energy Reported A Surprise Loss, And Analysts Have Updated Their Forecasts

Investors in Eversource Energy (NYSE:ES) had a good week, as its shares rose 8.4% to close at US$58.62 following the release of its annual results. Revenues fell 6.2% short of expectations, at US$12b. Earnings correspondingly dipped, with Eversource Energy reporting a statutory loss of US$1.26 per share, whereas the analysts had previously modelled a profit in this period. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Eversource Energy

Taking into account the latest results, the consensus forecast from Eversource Energy's ten analysts is for revenues of US$13.2b in 2024. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Eversource Energy is also expected to turn profitable, with statutory earnings of US$4.55 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.4b and earnings per share (EPS) of US$4.55 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$66.24. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Eversource Energy, with the most bullish analyst valuing it at US$94.00 and the most bearish at US$50.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 9.6% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.3% per year. So although Eversource Energy is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$66.24, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Eversource Energy. Long-term earnings power is much more important than next year's profits. We have forecasts for Eversource Energy going out to 2026, and you can see them free on our platform here.

Even so, be aware that Eversource Energy is showing 2 warning signs in our investment analysis , you should know about...

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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.