EVERSOURCE ENERGY Reports 2.2% Increase in Total Revenue for FY2023 Q2
August 26, 2023
☀️Earnings Overview
On July 31 2023, EVERSOURCE ENERGY ($NYSE:ES) released its Q2 earnings results for FY2023, showing total revenue increased 2.2% to USD 2629.3 million compared to the same period a year ago. Unfortunately, net income dropped 94.7% to USD 15.4 million.
Analysis
GoodWhale has conducted an analysis of the fundamentals of EVERSOURCE ENERGY, and based on Risk Rating, it is a medium risk investment in terms of financial and business aspects. This means that it may not be the best place to put your money for the highest return. However, it can still be a viable option depending on your financial goals and risk tolerance. GoodWhale has also detected two risk warnings in both the income sheet and the cashflow statement associated with EVERSOURCE ENERGY. In order to find out what these warnings are and how they affect the overall rating, you must become a registered user. As a registered user, you will gain access to detailed information about the company’s financial and business aspects, as well as further analysis of the company’s fundamentals. This can help you make an informed decision about whether EVERSOURCE ENERGY is right for you. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Eversource Energy. More…
| Total Revenues | Net Income | Net Margin |
| 12.67k | 1.18k | 11.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Eversource Energy. More…
| Operations | Investing | Financing |
| 2.1k | -4.13k | 2.03k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Eversource Energy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 54.11k | 38.2k | 45.15 |
Key Ratios Snapshot
Some of the financial key ratios for Eversource Energy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.0% | 7.6% | 18.6% |
| FCF Margin | ROE | ROA |
| -12.3% | 9.3% | 2.7% |
Peers
In the United States, the electric utility industry is structured as a complex web of vertically-integrated monopolies, each with their own unique strengths and weaknesses. Eversource Energy is one of the largest electric utilities in the Northeast, with over 3.6 million customers in Connecticut, Massachusetts, and New Hampshire. The company has a long history dating back to the late 1800s, and it has weathered many storms, both literal and figurative. Eversource’s primary competitors are WEC Energy Group Inc, PG&E Corp, and OGE Energy Corp. These companies are all much larger than Eversource, with customer bases that span multiple states and regions. While Eversource has a strong presence in the Northeast, its competitors have a much broader reach.
– WEC Energy Group Inc ($NYSE:WEC)
WEC Energy Group Inc is a diversified energy company that owns and operates utilities and non-utilities businesses in the Midwest and Northeast United States. The company has a market cap of $27.37B and a return on equity of 11.61%. WEC Energy Group’s businesses include electric and natural gas utility operations, power generation, and energy services. The company’s utilities include Wisconsin Electric, Wisconsin Gas, Peoples Gas, North Shore Gas, and We Energies. Non-utilities businesses include Wispark LLC, Integrys Energy Services, Inc., and Wisconsin Public Service Corporation.
– PG&E Corp ($NYSE:PCG)
PG&E Corp is a publicly-traded utility company headquartered in San Francisco, California. The company provides electricity and gas service to customers in northern and central California. PG&E is the largest provider of electricity in California and serves approximately 16 million people. The company has a market cap of $34.42 billion as of 2022 and a return on equity of 6.62%. PG&E is a regulated utility and is subject to the jurisdiction of the California Public Utilities Commission.
– OGE Energy Corp ($NYSE:OGE)
Duke Energy Corp is one of the largest electric power holding companies in the United States. It supplies and delivers electricity to approximately 7.4 million customers in six states – North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky – and has commercial operations in three more states. The company operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.
Duke Energy has a market cap of $69.7 billion and a return on equity of 18.7%. The company is one of the largest electric power holding companies in the United States and supplies electricity to approximately 7.4 million customers in six states. Duke Energy operates through three segments: Electric Utilities and Infrastructure, Gas Utilities and Infrastructure, and Commercial Renewables.
Summary
EVERSOURCE ENERGY reported total revenue of USD 2629.3 million for its FY2023 Q2, an increase of 2.2% compared to the same period in the prior year, but net income decreased 94.7% year over year to USD 15.4 million. This could be a red flag for investors as the company may be facing potential issues with cash flow and profitability. They should carefully analyze factors such as increased expenses or pricing pressures that may have impacted the earnings, and make an informed decision on whether to invest or not. Additionally, investors should consider the company’s debt levels and other financial metrics to gauge the level of risk associated with this investment.
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