Eversource Energy (ES) shares dropped to a 52-week low of $63.43 on Wednesday, extending a 2.56% decline over the past year, after the Massachusetts-based utility reported second-quarter earnings that came in below expectations.
The company posted earnings per share of $0.87, missing the consensus estimate of $0.94, while revenue fell to $2.9 billion from the projected $3.07 billion. Management attributed the shortfall primarily to significant non-cash charges tied to the completed sale of Aquarion Water and costs associated with an offshore wind project.
The Aquarion Water transaction, finalized for $1.7 billion, marks a strategic pivot as Eversource moves to refocus on its core regulated electric and gas utility businesses.
Despite the quarterly miss, Eversource reaffirmed its full-year 2026 non-GAAP EPS guidance at $4.57 to $4.72 and restated its long-term growth target of 5% to 7%. The company carries a dividend yield of 4.94%, supported by a 27-year streak of annual dividend increases, and currently trades near its fair value estimate.
On the analyst side, Mizuho raised its price target on Eversource to $74 from $70, though it kept a Neutral rating. Moody's upgraded the company's credit outlook to stable from negative, citing improvements in operational execution and balance-sheet management.
Eversource has a market capitalization of approximately $24 billion and a PEG ratio of 0.26.
