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Consolidated Edison (ED) Q3 Earnings Lag Estimates, Fall Y/Y

Zacks Equity Research

Consolidated Edison Inc. ED reported third-quarter 2019 adjusted earnings of $1.54 per share, which missed the Zacks Consensus Estimate of $1.59 by 3.1%. The bottom line also declined 1.9% from the year-ago quarter’s $1.57.

Barring one-time adjustments, the company posted GAAP earnings of $1.42 per share, reflecting 1.4% year-over-year improvement. This upside was driven by higher revenues and operating income.

Total Revenues

In the reported quarter, the company’s total revenues of $3,365 million missed the Zacks Consensus Estimate of $3,498 million by 3.8%. However, the top line rose 1.1% from $3,328 million in the year-ago quarter.

Electric revenues totaled $2,753 million in the third quarter, down 1.1% from the prior-year quarter’s $2,783 million. Gas revenues increased 2.7% to $306 million. Steam revenues declined 9.4% to $58 million. Meanwhile, non-utility revenues amounted to $248 million, up 35.5% from $183 million in the year-earlier quarter.

Consolidated Edison Inc Price, Consensus and EPS Surprise

 

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 slipped 0.2% year over year to $2,498 million.

Depreciation and amortization, other operations and maintenance, and taxes and other than income taxes increased 16.9%, 6.3% and 3.5%, respectively, from the prior-year quarter numbers. However, purchase power, fuel and gas purchased for resale declined 11.4%, 20.5% and 40.2% year over year, respectively.

Financials

Cash and temporary cash investments as of Sep 30, 2019 were $78 million compared with $895 million as of Dec 31, 2018.

Long-term debt was $17,537 million as of Sep 30, 2019, compared with $17,495 million at 2018 end.

At the end of the first nine months of 2019, cash from operating activities amounted to $1,490 million compared with $1,085 in the prior-year period.

2019 Guidance

For 2019, the company narrowed its adjusted earnings per share guidance to the range of $4.25-$4.35 compared with the prior guided range of $4.25-$4.45. The Zacks Consensus Estimate for full-year earnings is pegged at $4.34, above the midpoint of the company guided range.

Zacks Rank

Consolidated Edison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

NextEra Energy NEE reported third-quarter 2019 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.27 by 5.3%. Moreover, earnings were up 10.1% on a year-over-year basis.

Xcel Energy XEL posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%. The bottom line increased 5.2% from the year-ago quarter.

Hawaiian Electric HE reported earnings per share of 58 cents in the third quarter of 2019, which came in line with the Zacks Consensus Estimate. The bottom line declined 3.3% from 60 cents in the prior-year quarter.

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