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What's in Store for Consolidated Edison (ED) in Q4 Earnings?
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Consolidated Edison Inc. (ED - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 18, after market close. In the last-reported quarter, the company delivered a negative earnings surprise of 1.99%.
In the trailing four quarters, Consolidated Edison came up with an average earnings surprise of 2.92%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Although at the onset of the fourth quarter, majority of Consolidated Edison’s service territories witnessed warmer-than-normal temperature, from November notable snowfall along with wind gusts engulfed the area. This might have boosted electricity demand from the company’s customers for heating purposes, which in turn must have contributed to its quarterly revenue growth.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.06 billion, which indicates 3.6% increase from the year-ago quarter’s reported figure.
A handful of storms like a derecho and Hurricane Eta affected the company’s service areas during the fourth quarter, bringing strong wind gusts and floods. These in turn must have damaged utility properties, thereby hampering smooth electricity flow and pushing up expenses for restoration work. Moreover, the company has been incurring incremental expenses related to information technology for facilitating teleworking, benefits for employees and dependents affected by COVID-19 and other additional costs incurred to support the safety and well-being of workers during the crisis.
Cumulatively, these costs might have had an adverse impact on the company’s performance during the soon-to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 75 cents per share, indicating a 12.8% decline from the year-ago quarter’s reported figure.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Consolidated Edison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here as elaborated below.
Earnings ESP: Consolidated Edison has an Earnings ESP of -4.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are a handful of stocks from the Utilities sector that are yet to release their Q4 results and possess the right combination to deliver an earnings beat.
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +11.11% and holds a Zacks Rank #3.
Telephone and Data Systems (TDS - Free Report) has an Earnings ESP of +309.09% and carries a Zacks Rank #2.
American Electric Power (AEP - Free Report) has an Earnings ESP of +1.52% and carries a Zacks Rank #3.
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What's in Store for Consolidated Edison (ED) in Q4 Earnings?
Consolidated Edison Inc. (ED - Free Report) is scheduled to release fourth-quarter 2020 results on Feb 18, after market close. In the last-reported quarter, the company delivered a negative earnings surprise of 1.99%.
In the trailing four quarters, Consolidated Edison came up with an average earnings surprise of 2.92%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
Although at the onset of the fourth quarter, majority of Consolidated Edison’s service territories witnessed warmer-than-normal temperature, from November notable snowfall along with wind gusts engulfed the area. This might have boosted electricity demand from the company’s customers for heating purposes, which in turn must have contributed to its quarterly revenue growth.
Consolidated Edison Inc Price and EPS Surprise
Consolidated Edison Inc price-eps-surprise | Consolidated Edison Inc Quote
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.06 billion, which indicates 3.6% increase from the year-ago quarter’s reported figure.
A handful of storms like a derecho and Hurricane Eta affected the company’s service areas during the fourth quarter, bringing strong wind gusts and floods. These in turn must have damaged utility properties, thereby hampering smooth electricity flow and pushing up expenses for restoration work. Moreover, the company has been incurring incremental expenses related to information technology for facilitating teleworking, benefits for employees and dependents affected by COVID-19 and other additional costs incurred to support the safety and well-being of workers during the crisis.
Cumulatively, these costs might have had an adverse impact on the company’s performance during the soon-to-be-reported quarter. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 75 cents per share, indicating a 12.8% decline from the year-ago quarter’s reported figure.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Consolidated Edison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here as elaborated below.
Earnings ESP: Consolidated Edison has an Earnings ESP of -4.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a handful of stocks from the Utilities sector that are yet to release their Q4 results and possess the right combination to deliver an earnings beat.
CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +11.11% and holds a Zacks Rank #3.
Telephone and Data Systems (TDS - Free Report) has an Earnings ESP of +309.09% and carries a Zacks Rank #2.
American Electric Power (AEP - Free Report) has an Earnings ESP of +1.52% and carries a Zacks Rank #3.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>