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Eversource Capex Profile 'Exceptionally Strong,' $30 Million Fine for Connecticut Storm Outages 'Disappointing,' Janney Says

05/11/2021 12:20

04:04 PM EDT, 05/11/2021 (MT Newswires) -- Eversource Energy (ES) is on track to meet its 2021 guidance with an "exceptionally strong" capex profile following Q1 results in line with expectations, despite the "disappointing" penalties assessed by Connecticut regulators for the company's Storm Isaias response, Janney Capital said in a research note Tuesday.

State regulators on May 6 imposed the maximum $30 million civil penalty allowed by law on Eversource for failing to meet its obligations to ratepayers after service outages that lasted as long as nine days in the summer tropical storm's wake.

Eversource Energy reported Q1 earnings of $1.06 per share, up from $1.01 a year earlier. Analysts polled by Capital IQ projected EPS of $1.08, on average

Operating revenue was $2.83 billion for the quarter ended March 31, up from $2.37 billion a year ago. The Street forecast was for revenue of $2.56 billion.

The company said it now expects full-year recurring EPS toward the lower end of its 2021 guidance of $3.81 to $3.93 per share. Eversource reaffirmed its projected long-term EPS growth rate in the upper half of the range of 5% to 7%, from non-GAAP 2020 earnings of $3.64 per share.

Janney lowered its estimate of the stock's fair value to $95 from $97 and maintained a buy rating.

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