Eversource Energy beats third quarter profit estimates on higher power rates

Nov 4 (Reuters) - Eversource Energy (ES) beat Wall Street estimates for third-quarter profit on Tuesday, helped by higher rates for its services.

Shares of the company rose 2% after the bell.

U.S. utilities have sought rate increases to fund grid upgrades as electrical grids face extreme weather and growing demand from industrial electrification and data center expansion.

Regulated utilities use rate-case proceedings to determine how much customers pay for electricity, natural gas, private water and steam services.

During the third quarter, profit at Eversource's electric transmission business rose 6% to $185.5 million while at its electric distribution unit profit rose nearly 9% to $221.6 million.

Eversource narrowed its adjusted profit forecast to $4.72 to $4.80 per share in 2025, whose midpoint was above analysts' average estimate of $4.73 per share, according to LSEG.

Third-quarter results were partly offset by a $75 million, or 20 cents per share, charge because of an increased liability for two wind projects sold to Global Infrastructure Partners (GIP).

Last year, Eversource sold its stake in the South Fork and Revolution Wind projects to GIP, receiving adjusted gross proceeds of $745 million, down from $1.12 billion because of reduced capital spending and a delay to Revolution Wind's commercial operation.

The Massachusetts-based company posted an adjusted profit of $1.19 per share in the July-September quarter, compared with the analysts' average estimate of $1.15 per share, according to data compiled by LSEG. (Reporting by Dharna Bafna in Bengaluru; Editing by Alan Barona and Tasim Zahid)