Consolidated Edison (ED) to Post Q3 Earnings: What's in Store?
Consolidated Edison Inc. ED is scheduled to release third-quarter 2023 earnings on Nov 2, after market close.
The company delivered an earnings surprise of 5.17% in the last reported quarter. The stock boasts a four-quarter average earnings surprise of 8.22%.
Factors to Note
During most of the third quarter, ED’s service territories experienced a warmer-than-normal weather pattern. This is expected to have boosted electricity demand from the company’s customers during this summer, thereby favorably contributing to its third-quarter top-line performance.
The increased load growth driven by vehicle electrification is likely to have benefitted Consolidated Edison’s earnings in the third quarter.
However, heavy rainfalls and tornadoes hit several areas served by Consolidated Edison, resulting in flash floods. This might have resulted in outages for ED’s customers, reducing its electricity demand and its quarterly top line.
The adverse weather might have also pushed up ED’s quarterly operating expenses to restore and repair the damages. This, along with higher interest expenses, is likely to have adversely impacted its bottom-line performance.
Expectations
The Zacks Consensus Estimate for third-quarter revenues and earnings per share is pegged at $3.82 billion and $1.58, respectively. The third-quarter earnings figure indicates a decrease of 3.1% from the year-ago quarter, while that for revenues implies an 8.4% fall.
What Our Model Predicts
Our proven model predicts 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 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 +3.93%. 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.
Other Stocks to Consider
Investors can consider the following utility players that also 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 third-quarter 2023 results on Oct 31, before the market opens. It has an Earnings ESP of +1.33% and a Zacks Rank of 2.
The Zacks Consensus Estimate for its third-quarter sales stands at $2.42 billion, indicating a 6.7% increase from the prior-year figure. It delivered a four-quarter earnings surprise of 8.40%, on average.
Ameren Corp. AEE is scheduled to report third-quarter 2023 results on Nov 8, after the market closes. It has an Earnings ESP of +0.22% and a Zacks Rank of 3.
AEE’s long-term earnings growth rate is pegged at 6.6%. The Zacks Consensus Estimate for third-quarter sales is pegged at $2.37 billion, indicating a 2.9% increase from the prior-year figure.
Entergy Corp. ETR is set to report third-quarter 2023 results on Nov 1, before the market opens. It has an Earnings ESP of +0.74% and a Zacks Rank of 3, at present.
ETR’s long-term earnings growth rate is pegged at 5.8%. The Zacks Consensus Estimate for third-quarter sales stands at $4.04 billion, a 4.2% decrease from the prior-year figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Ameren Corporation (AEE) : Free Stock Analysis Report
Entergy Corporation (ETR) : Free Stock Analysis Report
Public Service Enterprise Group Incorporated (PEG) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
