Eversource Completes $2.4 Billion Sale of Aquarion Water Company
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 days ago
0mins
Source: Newsfilter
- Transaction Completion: Eversource Energy has successfully completed the $2.4 billion cash sale of Aquarion Water Company, expecting to realize approximately $1.7 billion in net equity proceeds to reduce debt, thereby strengthening its financial position.
- Strategic Restructuring: This transaction marks a pivotal shift for Eversource towards becoming a pure-play regulated utility, allowing the company to focus on its core electric and natural gas operations in New England, optimizing its portfolio to enhance customer service.
- Financial Impact: Eversource anticipates recognizing an after-tax non-cash charge of approximately $115 million in Q2 2026, impacting earnings by $0.31 per share, while its revised 2026 non-GAAP EPS guidance ranges from $4.57 to $4.72.
- Long-term Growth Outlook: The company expects its annual earnings growth rate to reach the upper end of its long-term guidance of 5% to 7% by 2028, based on the adjusted 2026 non-GAAP earnings guidance midpoint of $4.65, reflecting confidence in future financial performance.
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Analyst Views on ES
Wall Street analysts forecast ES stock price to fall
12 Analyst Rating
3 Buy
6 Hold
3 Sell
Hold
Current: 72.200
Low
60.00
Averages
71.91
High
80.00
Current: 72.200
Low
60.00
Averages
71.91
High
80.00
About ES
Eversource Energy is a utility holding company, which is engaged in the energy delivery business through its utility subsidiaries. Its segments include Electric Distribution, Electric Transmission, Natural Gas Distribution and Water Distribution. The Electric Distribution segment is engaged in the distribution of electricity to retail customers in Connecticut, Massachusetts and New Hampshire, respectively, and the solar power facilities of NSTAR Electric Company. The Electric Transmission segment owns and maintains transmission facilities that are part of an interstate power transmission grid over which electricity is transmitted throughout New England. The Natural Gas Distribution distributes natural gas to his customers in central and eastern Massachusetts. The Water Distribution segment provides water services to over 248,000 residential, commercial, industrial, municipal and fire protection and other customers, in 73 towns and cities in Connecticut, Massachusetts and New Hampshire.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eversource Completes $2.4 Billion Sale of Aquarion Water Company
- Transaction Completion: Eversource Energy has successfully completed the $2.4 billion cash sale of Aquarion Water Company, expecting to realize approximately $1.7 billion in net equity proceeds to reduce debt, thereby strengthening its financial position.
- Strategic Restructuring: This transaction marks a pivotal shift for Eversource towards becoming a pure-play regulated utility, allowing the company to focus on its core electric and natural gas operations in New England, optimizing its portfolio to enhance customer service.
- Financial Impact: Eversource anticipates recognizing an after-tax non-cash charge of approximately $115 million in Q2 2026, impacting earnings by $0.31 per share, while its revised 2026 non-GAAP EPS guidance ranges from $4.57 to $4.72.
- Long-term Growth Outlook: The company expects its annual earnings growth rate to reach the upper end of its long-term guidance of 5% to 7% by 2028, based on the adjusted 2026 non-GAAP earnings guidance midpoint of $4.65, reflecting confidence in future financial performance.
See More
Nike Shares Plummet, Underperforming in Dow Industrials
- Nike Stock Decline: Nike shares have fallen nearly 20% over the past three months and are down 48% from the August 2025 high, making it the worst performer in the Dow Industrials, only better than Chevron, indicating significant weakness in its market position.
- Year-to-Date Performance: Year-to-date, Nike's stock is down about 35%, and no other Dow constituent has performed worse in the past 12 months, highlighting the challenges it faces in the highly competitive sports apparel market.
- Constellation Brands Struggles: Constellation Brands, the maker of Corona and Modelo beers, has seen its stock drop nearly 8% in the last three months and is down 21% from its July 2025 high, reflecting pressure in its market segment.
- Healthcare Sector Strength: The healthcare sector has risen nearly 8% in the past month, with Moderna's stock surging 47%, indicating a strong recovery in the sector and investor confidence in its growth potential.
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The Importance of Market Capitalization for Investors
- Market Capitalization Comparison: Cincinnati Financial Corp. (CINF) has a market cap of $26.52 billion compared to Eversource Energy (ES) at $25.97 billion, providing investors with a true comparison of company values and avoiding investment decision errors due to stock price misunderstandings.
- Impact on Investor Decisions: Market capitalization not only affects a company's ranking among peers but also directly influences which mutual funds and ETFs are willing to hold the stock; for instance, funds focused on large-cap stocks may only be interested in companies valued at over $10 billion.
- Role of MidCap Index: The S&P MidCap index focuses on 400 smaller companies by excluding the largest 100, indicating that in the right market environment, mid-sized companies can outperform their larger rivals, thus offering potential high returns for investors.
- Stock Performance Comparison: At Thursday's close, CINF was down about 0.7% while ES was up about 0.6%, highlighting the differing performances of the two companies in the market and further emphasizing the importance of market capitalization in investment decisions.
See More
Investors Favor Twilio and Generac Amid AI Surge
- AI Investment Opportunities: Joe Terranova highlighted on CNBC that both Twilio and Generac are showing strong growth potential amid the AI surge, with Twilio's stock up about 60% year-to-date and Generac's stock having more than doubled, indicating robust fundamentals and market momentum.
- Technical Analysis Support: Terranova also mentioned Starbucks' technical performance, noting that while its stock has risen nearly 14% year-to-date, it has dropped almost 10% in the past month, currently finding support near the 200-day moving average, which may present a buying opportunity for investors.
- Retail Stock Performance: Investor Brian Belski recently purchased Dick's Sporting Goods and Academy Sports, with the former performing well due to its integration with Foot Locker; however, both stocks have underperformed the S&P 500 year-to-date, with Dick's stock up nearly 9%.
- Travel and Energy Investments: Belski also invested in American Airlines and Hyatt Hotels, the latter being a standout performer in the hotel sector and considered under-owned by institutions, while he pointed out Eversource Energy as an AI-related investment opportunity offering nearly a 5% dividend yield.
See More
Eversource Energy Reports Strong Q1 Earnings Beat
- Earnings Beat: Eversource Energy reported Q1 2026 non-GAAP EPS of $1.73, exceeding the $1.63 consensus estimate, with revenue of $4.5 billion surpassing expectations of $4.33 billion, demonstrating the company's resilience in challenging conditions.
- Extreme Weather Response: CEO Joe Nolan highlighted that the first-quarter performance was significantly impacted by a historic Nor’easter that caused widespread power outages, underscoring the company's critical role in responding to extreme weather events and its commitment to customer service.
- Regulatory Challenges: Nolan criticized FERC's recent decision to lower the return on equity, calling it arbitrary and flawed, especially when New England requires substantial transmission investments, which could impair the company's ability to complete essential transmission projects.
- Analyst Rating Changes: BofA raised its price target on Eversource from $72 to $75 while maintaining a Buy rating, citing meaningful earnings optionality, whereas Wells Fargo lowered its target to $74, indicating that FERC's decision could pressure the company's long-term growth trajectory.
See More
Eversource Energy Q1 2026 Earnings Call Insights
- Strong Operational Performance: Eversource Energy reported a GAAP EPS of $1.61 for Q1 2026, up from $1.50 in Q1 2025, despite a $43.9 million after-tax charge, demonstrating resilience amid regulatory challenges.
- Infrastructure Investment Returns: The company restored power to over 500,000 customers while responding to more than 2,000 safety events, indicating that ongoing infrastructure investments are enhancing operational efficiency and customer satisfaction, despite the challenges posed by FERC's adjustments to the base ROE.
- 2026 Earnings Guidance Adjustment: Following FERC's reduction of the transmission base ROE to 9.57%, Eversource revised its 2026 non-GAAP EPS guidance to a range of $4.57 to $4.72, reflecting the direct impact of the regulatory environment on the company's financial outlook.
- Long-Term Growth Target Reaffirmation: Management reaffirmed a long-term earnings growth rate of 5% to 7% based on the midpoint of the revised 2026 guidance, maintaining confidence in future capital investments and earnings growth despite prevailing uncertainties.
See More
Eversource Completes $2.4 Billion Sale of Aquarion Water Company
- Transaction Completion: Eversource Energy has successfully completed the $2.4 billion cash sale of Aquarion Water Company, expecting to realize approximately $1.7 billion in net equity proceeds to reduce debt, thereby strengthening its financial position.
- Strategic Restructuring: This transaction marks a pivotal shift for Eversource towards becoming a pure-play regulated utility, allowing the company to focus on its core electric and natural gas operations in New England, optimizing its portfolio to enhance customer service.
- Financial Impact: Eversource anticipates recognizing an after-tax non-cash charge of approximately $115 million in Q2 2026, impacting earnings by $0.31 per share, while its revised 2026 non-GAAP EPS guidance ranges from $4.57 to $4.72.
- Long-term Growth Outlook: The company expects its annual earnings growth rate to reach the upper end of its long-term guidance of 5% to 7% by 2028, based on the adjusted 2026 non-GAAP earnings guidance midpoint of $4.65, reflecting confidence in future financial performance.
See More
Nike Shares Plummet, Underperforming in Dow Industrials
- Nike Stock Decline: Nike shares have fallen nearly 20% over the past three months and are down 48% from the August 2025 high, making it the worst performer in the Dow Industrials, only better than Chevron, indicating significant weakness in its market position.
- Year-to-Date Performance: Year-to-date, Nike's stock is down about 35%, and no other Dow constituent has performed worse in the past 12 months, highlighting the challenges it faces in the highly competitive sports apparel market.
- Constellation Brands Struggles: Constellation Brands, the maker of Corona and Modelo beers, has seen its stock drop nearly 8% in the last three months and is down 21% from its July 2025 high, reflecting pressure in its market segment.
- Healthcare Sector Strength: The healthcare sector has risen nearly 8% in the past month, with Moderna's stock surging 47%, indicating a strong recovery in the sector and investor confidence in its growth potential.
See More
The Importance of Market Capitalization for Investors
- Market Capitalization Comparison: Cincinnati Financial Corp. (CINF) has a market cap of $26.52 billion compared to Eversource Energy (ES) at $25.97 billion, providing investors with a true comparison of company values and avoiding investment decision errors due to stock price misunderstandings.
- Impact on Investor Decisions: Market capitalization not only affects a company's ranking among peers but also directly influences which mutual funds and ETFs are willing to hold the stock; for instance, funds focused on large-cap stocks may only be interested in companies valued at over $10 billion.
- Role of MidCap Index: The S&P MidCap index focuses on 400 smaller companies by excluding the largest 100, indicating that in the right market environment, mid-sized companies can outperform their larger rivals, thus offering potential high returns for investors.
- Stock Performance Comparison: At Thursday's close, CINF was down about 0.7% while ES was up about 0.6%, highlighting the differing performances of the two companies in the market and further emphasizing the importance of market capitalization in investment decisions.
See More
Investors Favor Twilio and Generac Amid AI Surge
- AI Investment Opportunities: Joe Terranova highlighted on CNBC that both Twilio and Generac are showing strong growth potential amid the AI surge, with Twilio's stock up about 60% year-to-date and Generac's stock having more than doubled, indicating robust fundamentals and market momentum.
- Technical Analysis Support: Terranova also mentioned Starbucks' technical performance, noting that while its stock has risen nearly 14% year-to-date, it has dropped almost 10% in the past month, currently finding support near the 200-day moving average, which may present a buying opportunity for investors.
- Retail Stock Performance: Investor Brian Belski recently purchased Dick's Sporting Goods and Academy Sports, with the former performing well due to its integration with Foot Locker; however, both stocks have underperformed the S&P 500 year-to-date, with Dick's stock up nearly 9%.
- Travel and Energy Investments: Belski also invested in American Airlines and Hyatt Hotels, the latter being a standout performer in the hotel sector and considered under-owned by institutions, while he pointed out Eversource Energy as an AI-related investment opportunity offering nearly a 5% dividend yield.
See More
Eversource Energy Reports Strong Q1 Earnings Beat
- Earnings Beat: Eversource Energy reported Q1 2026 non-GAAP EPS of $1.73, exceeding the $1.63 consensus estimate, with revenue of $4.5 billion surpassing expectations of $4.33 billion, demonstrating the company's resilience in challenging conditions.
- Extreme Weather Response: CEO Joe Nolan highlighted that the first-quarter performance was significantly impacted by a historic Nor’easter that caused widespread power outages, underscoring the company's critical role in responding to extreme weather events and its commitment to customer service.
- Regulatory Challenges: Nolan criticized FERC's recent decision to lower the return on equity, calling it arbitrary and flawed, especially when New England requires substantial transmission investments, which could impair the company's ability to complete essential transmission projects.
- Analyst Rating Changes: BofA raised its price target on Eversource from $72 to $75 while maintaining a Buy rating, citing meaningful earnings optionality, whereas Wells Fargo lowered its target to $74, indicating that FERC's decision could pressure the company's long-term growth trajectory.
See More
Eversource Energy Q1 2026 Earnings Call Insights
- Strong Operational Performance: Eversource Energy reported a GAAP EPS of $1.61 for Q1 2026, up from $1.50 in Q1 2025, despite a $43.9 million after-tax charge, demonstrating resilience amid regulatory challenges.
- Infrastructure Investment Returns: The company restored power to over 500,000 customers while responding to more than 2,000 safety events, indicating that ongoing infrastructure investments are enhancing operational efficiency and customer satisfaction, despite the challenges posed by FERC's adjustments to the base ROE.
- 2026 Earnings Guidance Adjustment: Following FERC's reduction of the transmission base ROE to 9.57%, Eversource revised its 2026 non-GAAP EPS guidance to a range of $4.57 to $4.72, reflecting the direct impact of the regulatory environment on the company's financial outlook.
- Long-Term Growth Target Reaffirmation: Management reaffirmed a long-term earnings growth rate of 5% to 7% based on the midpoint of the revised 2026 guidance, maintaining confidence in future capital investments and earnings growth despite prevailing uncertainties.
See More
