ES Latest Report

Eversource's Financial Performance

Eversource (Ticker: ES) reported total operating revenues of $2.971 billion as of December 31, 2024, up 10.55% from $2.694 billion as of December 31, 2023. This growth reflects improvements in sales and operations, indicating enhanced market demand and business expansion capabilities.

Key Financial Data

1. Operating Revenue Growth: Operating revenue in 2024 grew by 10.55% compared to 2023, likely due to increased sales in the electricity and natural gas services sectors, especially during the winter demand peak.

2. Significant Cost Control: Sales costs decreased from $9.35 billion in 2023 to $7.41 billion in 2024, a 20.82% decrease, indicating significant progress in Eversource's operating efficiency and cost control, improving gross margin.

3. Improved Pre-Tax Profit: Pre-tax profit reached $151 million in 2024, compared to -$1.354 billion in 2023, showing a significant improvement in the company's profitability, reflecting the combined effects of overall revenue growth and cost control.

4. Increased Equity Method Investment Income: Eversource's income from equity method investments increased, contributing to the growth in operating revenue.

Industry Comparison

1. Overall Industry Analysis: In the electricity and natural gas industry, overall operating revenues are generally affected by market demand and price fluctuations. Many companies in the industry showed revenue growth in 2024 due to price volatility and increased investment in renewable energy. Eversource's 10.55% growth rate is strong in the industry, indicating its competitiveness in the market.

2. Peer Comparison Analysis: Compared to other companies in the industry, Eversource's operating revenue growth rate is higher than the industry average, demonstrating its strong performance in the market. Competitors such as Nextera Energy and Duke Energy had operating revenue growth rates in the range of 5%-8%, and Eversource outperformed these competitors, reflecting its advantages in market share and customer base.

Summary

Eversource performed well in 2024, mainly due to strong sales growth and effective cost control. The company's operating revenue growth rate is higher than the industry average, indicating its competitiveness and stable customer base in the market.

Opportunities

1. Growing Market Demand: The electricity and natural gas markets are expected to further increase due to climate change and economic recovery.

2. Cost Control Potential: Continued cost control and operational efficiency improvements will further enhance the company's profitability.

3. Increased Investment Income: Eversource's income from equity method investments is expected to further boost operating revenue.

Risks

1. Market Volatility: Price fluctuations in energy may affect the company's operating revenue, especially in an unstable economic environment.

2. Intensified Competition: Increased competition from other industry companies may affect Eversource's market share and sales growth.

3. Regulatory Risks: Changes in regulatory policies in the electricity and natural gas industries may impact the company's operations and profitability.