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Consolidated Edison (ED) Misses Q3 Earnings, Narrows View

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Consolidated Edison Inc. (ED - Free Report) posted third-quarter 2017 adjusted earnings of $1.47 per share that missed the Zacks Consensus Estimate of $1.54 by 4.6%. Reported earnings also declined 2.6% from the year-ago figure of $1.51 per share.

Excluding one-time adjustments, the company reported earnings of $1.48 per share, down from $1.63 in the third-quarter 2016.

Total Revenues

Consolidated Edison reported total revenues of $3,211 million in the third quarter, which surpassed the Zacks Consensus Estimate of $3,144 million by 2.1%. However, the top line  declined 6% from the year-ago level of $3,417 million.

Electric revenues came in at $2,675 million in the reported quarter, down 3.4% from the prior-year figure of $2,769 million. Gas revenues improved 26% to $296 million. While steam revenues fell 1.6% to $62 million, non-utility revenues amounted to $178 million, down 49.1% from $350 million a year ago.

Operating Statistics

Total operating expenses in the quarter decreased 9.4% to $2,338 million due to lower purchase power expenses.

Gas purchased for resale, other operation and maintenance, depreciation and amortization, fuel and taxes, and other than income taxes was up 42%, 1.4%, 10.5%, 3.4% and 3%, respectively. Meanwhile, purchase power expenses decreased 42.4%.

Consolidated Edison Inc Price, Consensus and EPS Surprise

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

Financials

Cash and temporary cash investments as of Sep 30 were $69 million compared with $776 million as of Dec 31, 2016.

Long-term debt was $14,651 million as of Sep 30 compared with $14,735 million at 2016 end.

At the end of the third quarter, cash from operating activities was $2,227 million compared with $2,336 million in the year-ago period.

Guidance

For 2017, the company has raised the lower end of its earnings per share guidance range. Currently, it expects earnings per share in the range of $4.05-$4.15 compared with $4.00-$4.15, guided earlier.

Zacks Rank

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

Peer Releases

Entergy Corporation (ETR - Free Report) reported third-quarter 2017 operational earnings of $2.35 per share beating the Zacks Consensus Estimate of $2.24 by 4.9%. The reported number improved 1.7% from the year-ago figure.

DTE Energy Company (DTE - Free Report) reported third-quarter 2017 operating earnings per share (EPS) of $1.48, which missed the Zacks Consensus Estimate of $1.53 by 3.3%. Operating earnings also declined 24.5% from the year-ago figure of $1.96.

American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2017 operating EPS of $1.10, missing the Zacks Consensus Estimate of $1.19 by 7.6%. The bottom line also declined 15.4% from $1.30 a year ago.

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