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

Consolidated Edison Inc. (NYSE: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 (NYSE: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 (NASDAQ: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 (NYSE: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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