Benzinga | Nov 2, 2020 10:15AM EST

Eversource Energy's Earnings: A Preview

Eversource Energy (NYSE: ES) releases its next round of earnings this Tuesday, November 03. Get the latest predictions in Benzinga's essential guide to the company's Q3 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts predict Eversource Energy will report earnings of $1.03 per share on revenue of $2.26 billion. Eversource Energy reported a per-share profit of $0.98 when it published results during the same quarter last year. Sales in that period totaled $2.18 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to match the consensus estimate when it reports Tuesday, earnings would be up 5.1%. Sales would be up 3.86% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019EPS Estimate 0.77 1.01 0.77 0.96EPS Actual 0.76 1.02 0.76 0.98Revenue Estimate 1.97 B 2.51 B 2.01 B 2.26 BRevenue Actual 1.95 B 2.37 B 2.05 B 2.18 B

Stock Performance

Over the last 52-week period, shares are up 7.63%. Given that these returns are generally positive, long-term shareholders can relax going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Eversource Energy is scheduled to hold the call at 09:00:00 ET and can be accessed here.