Consolidated Edison (ED) to Post Q2 Earnings: What's in Store?
Consolidated Edison ED is scheduled to release second-quarter 2023 earnings on Aug 3, after market close.
The company pulled off an earnings surprise of 12.96% in the last reported quarter. The stock boasts a four-quarter average earnings surprise of 9.51%.
Factors to Note
During most of the second quarter, ED’s service territories experienced a warmer-than-normal weather pattern accompanied by drought-like conditions. This is expected to have boosted electricity demand among the company’s customers for cooling purposes, thereby favorably contributing to its second-quarter top-line performance.
Moreover, strong rate-based growth in prior quarters might have added impetus to ED’s second-quarter revenues.
However, tornadoes hit parts of the areas served by Consolidated Edison, which might have resulted in outages for its customers, adversely impacting its overall revenue performance in the to-be reported quarter.
Gains from the sale of Clean Energy Businesses are likely to have contributed to the company’s overall earnings in the quarter.
However, higher input cost, interest expenses and increased revenue taxes are likely to have affected its bottom-line performance. Also, the tornados that hit ED’s service areas might have damaged its infrastructure, pushing up its quarterly operating expenses and hurting its earnings.
Expectations
The Zacks Consensus Estimate for second-quarter revenues and earnings per share is pegged at $3.29 billion and 58 cents, respectively. The second-quarter earnings figure indicates a decrease of 9.4% from the year-ago quarter, while that for revenues implies a 3.8% fall.
What Our Model Predicts
Our proven model does not conclusively predict an earnings beat for Consolidated Edison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.
Consolidated Edison Inc Price and EPS Surprise
Consolidated Edison Inc price-eps-surprise | Consolidated Edison Inc Quote
Earnings ESP: The company’s Earnings ESP is -1.11%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Consolidated Edison carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Investors can consider the following utility players that have the right combination of elements to post an earnings beat for the to-be-reported quarter.
Public Service Enterprise Group Inc. PEG is set to report second-quarter 2023 results on Aug 1, before the market opens. It has an Earnings ESP of +0.66% and a Zacks Rank of 2.
The Zacks Consensus Estimate for its second-quarter sales stands at $2.03 billion, indicating a 2.4% decrease from the prior-year figure. It delivered a four-quarter earnings surprise of 4.33%, on average.
Atmos Energy ATO is scheduled to report second-quarter 2023 results on Aug 2 after the market closes. It has an Earnings ESP of +6.88% and a Zacks Rank of 2.
ATO’s long-term earnings growth rate is pegged at 7.5%. The Zacks Consensus Estimate for second-quarter sales is pegged at $1.01 billion, indicating a 24.2% increase from the prior-year figure.
ALLETE Inc. ALE is set to report second-quarter 2023 results on Aug 8 before the market opens. It has an Earnings ESP of +2.56% and a Zacks Rank of 3, at present.
ALE’s long-term earnings growth rate is pegged at 8.1%. The Zacks Consensus Estimate for second-quarter sales stands at $378.53 million, indicating a 1.5% increase from the prior-year figure.
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Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
Atmos Energy Corporation (ATO) : Free Stock Analysis Report
Allete, Inc. (ALE) : Free Stock Analysis Report
