Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Is Consolidated Edison (ED) Poised To Beat On Q1 Earnings?

Published 04/29/2019, 04:44 AM
Updated 07/09/2023, 06:31 AM
Consolidated Edison (NYSE:ED) is set to release first-quarter 2019 results on May 2, after the market closes.
In the last reported quarter, the company delivered a positive earnings surprise of 1.32%. Moreover, Consolidated Edison surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 4.19%.
Let’s see how things are shaping up prior to this announcement.
Why a Likely Positive Surprise?
Our proven model shows that Consolidated Edison is likely to beat earnings estimates in the first quarter. Notably, a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen.
Earnings ESP: Consolidated Edison has an Earnings ESP of +0.07%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company carries a Zacks Rank #3, which along with a positive Earnings ESP increases the possibility of an earnings beat.
Conversely, we caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc Price and EPS Surprise | Consolidated Edison Inc Quote

Factors in Play

During the first quarter, major parts of New York experienced below-average and below- normal temperatures, subsequently witnessing cold winters characterized by heavy snowstorms. This, in turn, will result in higher household expenditure on heating, which may have a favorable impact on the company’s revenues in the upcoming results.

In line with this, the Zacks Consensus Estimate of $3.39 billion for the company’s first-quarter sales suggests a rise of 0.9% from the year-ago quarter’s reported figure.
Consolidated Edison’s regulated utilities continue to provide it with a stable earnings base coupled with positive outcomes from the rate hike appeal by its utilities. In 2018, the company's results of operations reflected lower income tax expenses compared to that in 2017. We anticipate to witness a similar trend in the upcoming quarterly results as well.
Considering this, the Zacks Consensus Estimate for Consolidated Edison’s first-quarter earnings of $1.38 calls for a marginal rise of 0.7% from the figure reported in the year-ago quarter.
Other Stocks to Consider
Here are a few other players from the Utilities sector that have the right combination of elements to post an earnings beat this quarter.
Pinnacle West Capital Corp. (NYSE:PNW) has an Earnings ESP of +1.41% and a Zacks Rank #2. The company is scheduled to report first-quarter results on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
PPL Corp. (NYSE:PPL) has an Earnings ESP of +0.28% and a Zacks Rank #3. The company is scheduled to report first-quarter results on May 2.
Entergy Corp. (NYSE:ETR) has an Earnings ESP of +3.99% and a Zacks Rank #2. The company is scheduled to report first- quarter results on May 1.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1% and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.


Consolidated Edison Inc (ED): Free Stock Analysis Report

PPL Corporation (PPL): Free Stock Analysis Report

Entergy Corporation (ETR): Free Stock Analysis Report

Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.