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Why Is Con Ed (ED) Up 3.3% Since Last Earnings Report?
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A month has gone by since the last earnings report for Consolidated Edison (ED - Free Report) . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Con Ed due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Consolidated Edison Q4 Earnings Tops Estimate, Revenues Fall
Consolidated Edison Inc. reported fourth-quarter 2020 adjusted earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate of 72 cents by 4.2%. Moreover, the bottom-line figure plunged 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 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% flat 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% when compared to $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 at $596 million. Steam revenues plunged 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.
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 in the prior year.
2021 Guidance
For 2021, the company expects to generate adjusted earnings per share in the range of $4.15-$4.35. The Zacks Consensus Estimate for full-year earnings is pegged at $4.40, higher than the company’s guided range.
In 2021, Consolidated Edison expects to make capital investments of $4,018 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Con Ed has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. It's no surprise Con Ed has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Why Is Con Ed (ED) Up 3.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Consolidated Edison (ED - Free Report) . Shares have added about 3.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Con Ed due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Consolidated Edison Q4 Earnings Tops Estimate, Revenues Fall
Consolidated Edison Inc. reported fourth-quarter 2020 adjusted earnings of 75 cents per share, which surpassed the Zacks Consensus Estimate of 72 cents by 4.2%. Moreover, the bottom-line figure plunged 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 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% flat 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% when compared to $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 at $596 million. Steam revenues plunged 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.
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 in the prior year.
2021 Guidance
For 2021, the company expects to generate adjusted earnings per share in the range of $4.15-$4.35. The Zacks Consensus Estimate for full-year earnings is pegged at $4.40, higher than the company’s guided range.
In 2021, Consolidated Edison expects to make capital investments of $4,018 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
VGM Scores
Currently, Con Ed has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision looks promising. It's no surprise Con Ed has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.