Consolidated Edison (ED) Q3 Earnings Beat, Revenues Fall Y/Y
Consolidated Edison, Inc. ED reported third-quarter 2023 adjusted earnings of $1.62 per share, which beat the Zacks Consensus Estimate of $1.58 per share by 2.5%. However, the bottom line decreased 0.6% from $1.63 in the prior-year quarter.
Barring one-time adjustments, the company posted of $1.53 per share compared with $1.73 in the third quarter of 2022.
Total Revenues
In the reported quarter, Consolidated Edison's total revenues of $3,872 million beat the Zacks Consensus Estimate of $3,816 million by 1.5.%. However, the top line declined 7% from $4,165 million in the year-ago quarter. The downside was due to lower gas steam and non-utility revenues.
Electric revenues totaled $3,469 million in the third quarter, up 4.2% from the prior-year quarter. Gas revenues were down 22.1% to $353 million.
Steam revenues were down 15.5% to $49 million. Non-utility revenues amounted to $1 million compared with $326 million in the year-earlier quarter.
Consolidated Edison Inc Price, Consensus and EPS Surprise
Consolidated Edison Inc price-consensus-eps-surprise-chart | Consolidated Edison Inc Quote
Operating Statistics
Total operating expenses in the third quarter declined by 3.9% year over year to $3,149 million.
Fuel expenses decreased 42.4% year over year, and the cost of gas purchased for resale came down by 60.5%. Depreciation and amortization expenses decreased 2.5%, and taxes, other than income taxes, increased 3.1% year over year. Other operations and maintenance expenses went down by 6.6%, while purchase power costs increased 8.9%.
The company’s third-quarter operating income declined 18.8% year over year to $722 million.
Financials
Cash and temporary cash investments as of Sep 30, 2023 were $539 million compared with $1,282 million as of Dec 31, 2022.
The long-term debt was $20,650 million as of Se 30, 2023 compared with $20,147 million at the 2022-end.
For the nine months ended Sep 30, 2023, cash from operating activities amounted to $1,181 million compared with the $2,618 million generated in the year-ago period.
2023 Guidance
Consolidated Edison updated its 2023 guidance. It now expects earnings per share (EPS) in the range of $5-$5.10, up from the previous guidance range of $4.85-$5. The Zacks Consensus Estimate for full-year earnings is pegged at $4.91 per share, lower than the midpoint of the company’s guided range.
Zacks Rank
Consolidated Edison currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
PG&E Corporation’s PCG adjusted EPS of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure.
In the third quarter, PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.
NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. However, the top line improved 6.7% year over year.
CenterPoint Energy CNP reported third-quarter 2023 adjusted earnings of 40 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents by 8.1%. The bottom line also improved 25% from the year-ago quarter’s figure, driven by regulatory recovery and favorable weather.
CNP generated revenues of $1,860 million, down 2.3% from the year-ago quarter’s reported figure. The top line missed the Zacks Consensus Estimate of $1,910.7 million by 2.7%.
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