Eversource Energy (NYSE:ES), a $21.9 billion utility provider trading at $59.78, announced an amendment to its executive retirement plan, effective January 1, 2025. As detailed in a recent 8-K filing with the Securities and Exchange Commission (SEC), the company's Compensation Committee has approved the addition of the Eversource Supplemental Cash Balance Pension Plan to its existing Supplemental Executive Retirement Program. According to InvestingPro data, the company maintains a FAIR financial health score despite operating with a significant debt burden.
The decision, made on Monday, December 3, 2024, aims to modify the compensatory arrangements for certain officers of the company. However, the specific details of the changes and how they will affect the retirement benefits of the executives were not disclosed in the filing.
In other recent news, Eversource Energy reported a GAAP loss of $0.33 per share in its third-quarter earnings call, primarily due to its strategic exit from the offshore wind sector, resulting in a net loss of $524 million. Despite this, the company's recurring earnings per share increased to $1.13, up from $0.97 year-over-year. Eversource also updated its full-year 2024 recurring EPS guidance to $4.52 to $4.60.
The utility company announced plans to invest nearly $24 billion in infrastructure by 2028, with significant allocations for transmission and electric distribution. Eversource secured $110 million in federal funding for clean energy initiatives and received approval for a $600 million Electric Sector Modernization Plan.
The firm's analysis suggests Eversource's earnings per share compound annual growth rate is projected at around 1%, with flat EPS expected in the fiscal year 2025. These recent developments highlight a cautious stance on Eversource Energy's prospects, indicating a multitude of hurdles to clear in order to justify its current stock valuation.
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