Consolidated Edison Inc. ( ED Quick Quote ED - Free Report) is scheduled to release first-quarter 2021 results on May 6, after market close. In the last-reported quarter, the company delivered an earnings surprise of 4.17%.
In the trailing four quarters, Consolidated Edison came up with an average earnings surprise of 1.75%.
Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.
Factors to Consider
During most part of the first quarter, majority of Consolidated Edison’s service territories witnessed colder-than-normal temperature, accompanied by record snowfall in the month of February. 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 first-quarter revenues is pegged at $3.51 billion, which indicates 8.5% increase from the year-ago quarter’s reported figure.
A massive snowstorm affected the company’s service areas in February, bringing strong wind gusts and record snowfall. These in turn might have damaged some of this utility’s 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, as a result of the COVID-19 impact.
Such expenses might have had an adverse impact on the company’s bottom-line performance during the soon-to-be-reported quarter, thereby partially offsetting the benefits of the top line growth projection.
The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.36 per share, indicating a 1.5% hike from the year-ago quarter’s reported figure.
Our proven model predicts 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. Earnings ESP: Consolidated Edison has an Earnings ESP of +0.06%. 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 Other Stocks to Consider
Here are some more players from the
Utilities sector with the right combination of elements to post an earnings beat in the to-be-reported quarter. CenterPoint Energy ( CNP Quick Quote CNP - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #3. UGI Corp ( UGI Quick Quote UGI - Free Report) has an Earnings ESP of +1.74% and a Zacks Rank #3. Duke Energy ( DUK Quick Quote DUK - Free Report) has an Earnings ESP of +0.16% and a Zacks Rank #3. Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better. See these 7 breakthrough stocks now>>