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Eversource Energy (ES) Q4 2024 Earnings Call Highlights: Strong EPS Growth and Strategic Investments

In This Article:

  • Earnings Per Share (EPS): Up 5.3% year-over-year, with non-GAAP EPS at $4.57 for 2024.

  • GAAP Earnings: $2.27 per share for 2024 compared to a GAAP loss of $1.26 per share in 2023.

  • Electric Transmission Earnings: $2.03 per share in 2024, up from $1.84 per share in 2023.

  • Electric Distribution Earnings: $1.77 per share in 2024, compared to $1.74 per share in 2023.

  • Natural Gas Distribution Earnings: $0.81 per share in 2024, up from $0.64 per share in 2023.

  • Water Distribution Earnings: $0.12 per share in 2024, excluding the loss on the pending sale of Aquarion.

  • 2025 EPS Guidance: Projected in the range of $4.67 to $4.82.

  • Capital Investment Plan: $24.2 billion planned for 2025-2029, a 10% increase from the previous plan.

  • Rate Base Growth: 8% growth from 2023 through 2029.

  • Dividend Increase: First quarter 2025 dividend increased by 5.2% on an annualized basis.

  • Aquarion Sale: Aggregate enterprise value of approximately $2.4 billion, including $1.6 billion in cash.

  • Cash Flow Improvement: Nearly 50% increase in cash flows from operations expected in 2025 compared to 2024.

Release Date: February 12, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Eversource Energy (NYSE:ES) reported a 5.3% year-over-year increase in earnings per share, exceeding the midpoint of their revised guidance.

  • The company successfully issued $1 billion of equity through their ATM program, strengthening their balance sheet.

  • Eversource Energy (NYSE:ES) was recognized by Newsweek as one of America's most responsible companies for the sixth consecutive year.

  • The company announced the sale of Aquarion Water at an attractive multiple of 1.7 times rate base, which will help reduce debt and reinvest in regulated utilities.

  • Eversource Energy (NYSE:ES) has a new five-year capital investment plan that increases investment by nearly 10%, focusing on transmission investments to address aging infrastructure needs.

Negative Points

  • The company faced headwinds in 2024, including higher interest expenses and the absence of prior year net benefits from asset sales.

  • Eversource Energy (NYSE:ES) is dealing with regulatory challenges, particularly in Connecticut, where they are seeking to improve the regulatory environment.

  • The sale of Aquarion Water, while financially beneficial, will result in a loss of $0.83 per share in earnings.

  • The company's 2025 earnings guidance is below the long-term growth target of 5% to 7%, partly due to the dilutive effect of equity issued in 2024.

  • Eversource Energy (NYSE:ES) is facing pressure to maintain a healthy FFO to debt ratio, with Moody's currently having them on a negative outlook.