Revenue Beat: Eversource Energy Beat Analyst Estimates By 9.2%

Investors in Eversource Energy (NYSE:ES) had a good week, as its shares rose 4.6% to close at US$62.24 following the release of its quarterly results. Results overall were respectable, with statutory earnings of US$1.50 per share roughly in line with what the analysts had forecast. Revenues of US$4.1b came in 9.2% ahead of analyst predictions. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the consensus forecast from Eversource Energy's 14 analysts is for revenues of US$13.1b in 2025. This reflects an okay 3.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 107% to US$4.74. In the lead-up to this report, the analysts had been modelling revenues of US$13.2b and earnings per share (EPS) of US$4.73 in 2025. 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.

Check out our latest analysis for Eversource Energy

There were no changes to revenue or earnings estimates or the price target of US$69.03, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Eversource Energy, with the most bullish analyst valuing it at US$85.00 and the most bearish at US$47.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Eversource Energy's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% annually. Factoring in the forecast slowdown in growth, it looks like Eversource Energy is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$69.03, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Eversource Energy analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 4 warning signs for Eversource Energy (2 make us uncomfortable) you should be aware of.

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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.