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Consolidated Edison (ED) to Post Q2 Earnings: What's in Store?

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Consolidated Edison Inc. (ED - Free Report) is scheduled to release second-quarter 2021 results on Aug 5, after market close. In the last reported quarter, the company delivered an earnings surprise of 5.15%.

Consolidated Edison came up with a four-quarter average earnings surprise of 4.61%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

For the first two months of the second quarter, majority of Consolidated Edison’s service territories witnessed warmer-than-normal temperature, accompanied by severe drought condition. In June, major parts of the company’s operational regions witnessed heavy rainfall. This reflects more or less favorable weather pattern, in terms of electricity demand, to have prevailed during the second quarter, which in turn must have contributed favorably to the company’s quarterly revenue growth.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.82 billion, which indicates 3.9% increase from the year-ago quarter’s reported figure.

Some parts of Consolidated Edison’s service territories suffered from flash flood, accompanied with heavy rainfall, at the end of the second quarter, which might have damaged some of this utility’s properties, thereby hampering smooth electricity flow and pushing up expenses for restoration work. This might have had an adverse impact on its quarterly earnings performance.

Nevertheless, electric and gas base rate increases in January 2021 under the company's rate plans are projected to have contributed favorably to its bottom line in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 62 cents per share, indicating a 3.3% increase from the year-ago quarter’s reported figure.

Earnings Whispers

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 +1.74%. 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 other 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 - Free Report) has an Earnings ESP of +0.68% and holds a Zacks Rank #3.

Duke Energy (DUK - Free Report) has an Earnings ESP of +0.15% and carries a Zacks Rank #3.

Telephone and Data Systems (TDS - Free Report) has an Earnings ESP of +6.33% and sports a Zacks Rank #1.

 

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