Consolidated Edison (ED) Q2 Earnings Miss, Maintains View

Consolidated Edison Inc. (NYSE:ED) posted second-quarter 2016 adjusted earnings of 60 cents per share, missing the Zacks Consensus Estimate of 72 cents by 16.7%. Reported earnings also decreased 23.1% from the year-ago figure of 78 cents.

Total Revenue

Consolidated Edison reported total revenue of $2,794 million in the second quarter, which fell short of the Zacks Consensus Estimate of $2,857 million by 2.2%. Revenues, however, inched up 0.2% year over year.

Electric revenues came in at $2,035 million in the reported quarter, down from the prior-year figure of $2,040 million. Gas revenues were up 3.7% to $336 million. Steam revenues dropped 11.5% to $85 million, while non-utility revenues amounted to $338 million, up 3% from $328 million a year ago.

Operating Statistics

Total operating expenses in the quarter decreased 1.6% to $2,279 million due to lower purchase power and gas purchased for resale expenses.

While fuel, depreciation and amortization, operations and maintenance, and taxes other than income taxes increased a respective 6.5%, 9.4%, 2.2% and 5.9%, purchase power and gas purchased for resale expenses decreased 15.5% and 9%.

Financials

Cash and cash equivalents as of Jun 30, 2016 were $862 million, compared with $944 million as of Dec 31, 2015. Net cash flow from operating activity in the first half of 2016 was $1,631 million, compared with $1,486 million a year ago.

Long-term debt was $13,747 million as of Jun 30, 2016, up from $12,006 million at 2015 end.

Guidance

For 2016, the company reaffirmed its earnings guidance in the range of $3.85 to $4.05 per share.

Peer Releases

DTE Energy Company (NYSE:DTE) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.

Public Service Enterprise Group Inc. (NYSE:PEG) reported second-quarter 2016 operating earnings of 57 cents per share, in line with both the Zacks Consensus Estimate and the year-ago figure. On a GAAP basis, quarterly earnings were 37 cents per share, down from 68 cents a year ago.

PG&E Corporation’s (NYSE:PCG) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%. Earnings also tanked 27.5% from 91 cents reported in the year-ago quarter.

Zacks Rank

Consolidated Edison currently has a Zacks Rank #3 (Hold).

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