Consolidated Edison Beats on Q2 Earnings, Revenues, View Up

Zacks

Consolidated Edison Inc. (ED) posted second quarter 2014 earnings from ongoing operations of 65 cents per share, beating the Zacks Consensus Estimate of 54 cents by 20.4%. The earnings beat came on the back of higher sales and operating efficiencies. Earnings also increased 18.2% from the year-ago figure of 55 cents per share.

Including the gain on sale of solar energy projects, the company registered earnings of 73 cents per share compared with 59 cents in the year-ago quarter.

Quarterly Operational Results

Consolidated Edison reported revenues of $2,911 million, up 3.3% year over year. The top line also surpassed the Zacks Consensus Estimate of $2,641 million by 10.2%. The results reflect higher electric and gas sales.

The company's largest top-line generator, Electric revenues were up 5.7% year over year while Gas revenues rose 7.9%. However, non-utility and steam revenues decreased 10.1% and 16.9%, respectively.

Total operating expenses were up 2.8% year over year to $2,501 million. Purchased power expenses increased almost 2%, fuel cost was down 41.4% and gas purchased for resale cost increased nearly 28%. Depreciation and amortization expenses increased 3.9% year over year.

Guidance

For 2014, Consolidated Edison increased its earnings from ongoing operations guidance to the range of $3.70 to $3.85 per share from its previous forecast of $3.65 to $3.85 per share. The company expects capital expenditure of around $2,608 million for the year, the majority of which will be spent at its regulated utilities.

Financials

Cash at the end of Jun 30, 2014 was $774 million versus $674 million at the end of Dec 31, 2013. Long-term debt was $11.1 billion as of Jun 30, 2014 versus $10.5 billion at 2013 end.

Peer Reviews

Duke Energy Corp. (DUK) reported adjusted second quarter 2014 earnings of $1.11 per share that came in ahead of the Zacks Consensus Estimate of $1.00 by 11%. Quarterly earnings also increased 27.6% from the year-ago figure of 87 cents.

American Electric Power Company Inc. (AEP) reported second quarter 2014 operating earnings of 80 cents per share, beating the Zacks Consensus Estimate of 75 cents by 6.7%. The quarterly figure also improved 9.6% from the year-ago adjusted profit of 73 cents per share. The upbeat performance was supported by investments in infrastructure and transmission as well as system improvement.

Entergy Corp. (ETR) posted second quarter 2014 operational earnings of $1.11 per share, higher than the year-ago number of $1.01 per share by 9.9%. However, earnings failed to surpass the Zacks Consensus Estimate of $1.14. Quarterly earnings increased on the back of strong performance from its Utility and Entergy Wholesale Commodities units.

Zacks Rank

Consolidated Edison currently has a Zacks Rank #2 (Buy).
 

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