Consolidated Edison (ED) Q4 Earnings Beat Estimates, Revenues Miss
Shares of Consolidated Edison, Inc. ED fell 1% to reach $87.32 on Feb 16, following the company’s latest report.
The company reported fourth-quarter 2023 adjusted earnings of $1 per share, which beat the Zacks Consensus Estimate of 98 cents by 2%. The bottom line also increased a solid 23.5% from 81 cents recorded in the prior-year quarter.
Barring one-time adjustments, the company posted GAAP earnings of 97 cents per share compared with 53 cents in the fourth quarter of 2022.
For 2023, the company generated adjusted earnings of $5.07 per share compared with $4.57 in 2022.
Consolidated Edison Inc Price, Consensus and EPS Surprise
Consolidated Edison Inc price-consensus-eps-surprise-chart | Consolidated Edison Inc Quote
Total Revenues
In the reported quarter, Consolidated Edison's total revenues of $3,444 million missed the Zacks Consensus Estimate of $3,744 million by 8%. The top line also declined 14.6% from $4,031 million reported in the year-ago quarter. The downside was primarily due to lower gas, steam and non-utility revenues.
Electric revenues totaled $2,527 million in the fourth quarter, almost flat year over year. Gas revenues were down 13.5% to $772 million.
Steam revenues were down 3.4% to $144 million. Non-utility revenues amounted to $1 million compared with $462 million in the year-earlier quarter.
For 2023, the company reported total revenues of $14.66 billion, down from $15.67 billion recorded in 2022.
Operating Statistics
Total operating expenses in the fourth quarter declined 14% year over year to $2,992 million.
Fuel expenses decreased 59.4% year over year, and the cost of gas purchased for resale came down 54.3%. Purchase power costs decreased 12.7%. Other operations and maintenance expenses went down 17.1%. On the other hand, depreciation and amortization expenses increased 13.2%.Taxes, other than income taxes, went up 0.5% year over year.
The company’s fourth-quarter operating income declined 18% year over year to $451 million.
Financials
Cash and temporary cash investments as of Dec 31, 2023, were $1,189 million compared with $1,282 million as of Dec 31, 2022.
The long-term debt was $21,927 million as of Dec 31, 2023, compared with $20,147 million at 2022-end.
For 2023, cash from operating activities amounted to $2,156 million compared with $3,935 million generated in the prior year.
Guidance
Consolidated Edison initiated its 2024 guidance. It expects adjusted earnings per share (EPS) in the range of $5.20-$5.40. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.29 per share, just below the midpoint of the company’s guided range.
The company also projects a five-year compounded annual adjusted earnings per share growth rate of 5-7%, based on its 2024 adjusted EPS guidance.
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
DTE Energy Company DTE reported fourth-quarter 2023 operating EPS of $1.97, which came in line with the Zacks Consensus Estimate. The bottom line, however, improved 50.4% from the year-ago quarter’s reported figure of $1.31.
DTE Energy initiated its 2024 operating EPS projection. The company expects operating EPS in the range of $6.54-$6.83.
Xcel Energy XEL reported fourth-quarter 2023 operating earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.3%. However, the bottom line improved 620.3% from the year-ago quarter’s figure of 69 cents.
The fourth-quarter revenues of $3,442 million missed the Zacks Consensus Estimate of $3,972 million by 13.34%. The figure also declined 15.07% from the year-ago quarter’s $4,053 million.
CMS Energy Corporation CMS reported fourth-quarter 2023 adjusted EPS of $1.05, which beat the Zacks Consensus Estimate of $1.04 by 1%. The bottom line also increased 75% from 60 cents reported in the prior-year quarter.
Operating revenues totaled $1,950 million, which lagged the Zacks Consensus Estimate of $2,461.4 million by 20.8%. The top line also decreased 14.4% on a year-over-year basis.
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