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Consolidated Edison (ED) Q4 Earnings Tops Estimates, Revenues Miss

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Consolidated Edison Inc. (ED - Free Report) reported fourth-quarter 2020 adjusted earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate of 72 cents by 4.2%. However, the bottom-line figure declined 12.8% from 86 cents in the prior-year quarter.

Including one-time adjustments, the company posted GAAP earnings of 79 cents per share, reflecting a 10.2% year-over-year decline. This downside can be attributed to lower operating income recorded in the reported quarter.

For 2020, the company recorded earnings of $4.18 per share, which surpassed the Zacks Consensus Estimate of $4.15. The full-year bottom line, however, declined 4.6% year over year.

Total Revenues

In the reported quarter, the company’s total revenues of $2,960 million missed the Zacks Consensus Estimate of $3,057 million by 3.2%. The top line, however, improved by a slight 0.3% when compared with $2,951 million in the year-ago quarter.

For 2020, the company’s total revenues of $12.25 billion missed the Zacks Consensus Estimate of $12.31 billion by 0.5%. The full-year top line declined 2.6% from $12.57 billion in the prior year.

Electric revenues totaled $2,070 million in the fourth quarter, up 2% from the prior-year quarter’s $2,029 million. Gas revenues declined 0.7% year over year to $596 million. Steam revenues dropped 22.2% to $123 million.

Meanwhile, non-utility revenues amounted to $171 million, up 4.3% from $164 million in the year-earlier quarter.

Operating Statistics

Total operating expenses in the fourth quarter increased 2.8% year over year to $2,453 million.

Depreciation and amortization, purchased power, and taxes other than income taxes grew 13.9%, 19% and 8.9%, respectively, from the prior-year quarter’s numbers.

However, other operations and maintenance, fuel, and gas purchased for resale declined 7.3%, 25.6% and 22% year over year, respectively.

Total operating income in the fourth quarter dropped 10.3% year over year to $507 million.

Consolidated Edison Inc Price, Consensus and EPS Surprise

Financials

Cash and temporary cash investments as of Dec 31, 2020, were $1,272 million compared with $981 million as of Dec 31, 2019.

Long-term debt was $20,382 million as of Dec 31, 2020, compared with $18,527 million at 2019-end.

At the end of 2020, cash from operating activities amounted to $2,198 million compared with $3,134 million in the prior year.

2021 Guidance

For 2021, the company expects to generate adjusted earnings per share of $4.15-$4.35. The Zacks Consensus Estimate for full-year earnings is pegged at $4.40 per share, higher than the company’s guided range.

In 2021, Consolidated Edison expects to make capital investments of $4,018 million.

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

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

CMS Energy Corp. (CMS - Free Report) reported fourth-quarter 2020 adjusted earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 1.8%.

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