Consolidated Edison Inc ED is scheduled to release third-quarter 2019 results on Nov 4, after market close.
In the last reported quarter, the company delivered a negative earnings surprise of 3.33%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
During the third quarter, majority of Consolidated Edison’s service territories witnessed warmer-than-expected weather. This might have led to higher electricity demand for cooling, which in turn is expected to have contributed to the company’s third-quarter revenue growth.
In line with this, the Zacks Consensus Estimate for third-quarter revenues is pegged at $3.5 billion that indicates 5.1% increase from the year-ago quarter’s reported figure.
To support its grid on summer days, Consolidated Edison has been installing battery systems in its service territories, since middle of the second quarter. These battery storage systems enable the company to utilize the surplus electricity in the peak hours and ensure power generation in an effective manner. This is expected to have driven margins and in turn contributed to the bottom line.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.59 per share that indicates 1.9% increase from the year-ago quarter’s reported figure.
Our proven model doesn’t 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 chances of an earnings beat. But that’s not the case here.
Earnings ESP: The company’s Earnings ESP is -0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Consolidated Edison carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Consolidated Edison Inc Price and EPS Surprise
Consolidated Edison Inc price-eps-surprise | Consolidated Edison Inc Quote
Stocks to Consider
Here some companies that you may consider from the same industry as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.
PNM Resources PNM is lined up to release third-quarter 2019 results on Nov 1. It has an Earnings ESP of +1.99% and a Zacks Rank of #2.
CenterPoint Energy CNP is set to release third-quarter 2019 results on Nov 7. It has an Earnings ESP of +0.12% and has a Zacks Rank #3.
PPL Corporation PPL is scheduled to release third-quarter 2019 results on Nov 5. It has an Earnings ESP of +1.37% and a Zacks Rank of #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
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
PNM Resources, Inc. (Holding Co.) (PNM) : Free Stock Analysis Report
CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report
Consolidated Edison Inc (ED) : Free Stock Analysis Report
PPL Corporation (PPL) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research