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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 2021 results on Feb 17 after market close.

In the last reported quarter, the company delivered a negative earnings surprise of 2.76%. Consolidated Edison came up with a four-quarter average negative earnings surprise of 1.99%.

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

Factors to Consider

During most of the fourth quarter, ED’s service territories witnessed warmer-than-normal temperatures accompanied by slight precipitation in some parts. This is likely to have had an adverse impact on Consolidate Edison’s quarterly top line compared with last year since the autumn season usually brings in cool temperature.

Moreover, in October and December, some parts of its service territories suffered from thunderstorms and flash floods, which might have disrupted the smooth flow of electricity to its customers. Also, in November, some parts of its service territories experienced a tornado, thereby hampering the smooth electricity flow to its customers. These factors might have also contributed unfavorably to the company’s revenues in the to-be-reported quarter.

However, positive outcomes from timely rate revisions can be projected to have aided Consolidated Edison’s overall results in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.97 billion, indicating a 0.3% rise from the year-ago quarter’s reported figure.

From the cost perspective, restoration costs concerning thunderstorms and a tornado, which might have damaged some of this utility’s properties and caused power outages for a few of its customers, might have hurt its quarterly earnings.

On a bright note, positive returns from the company’s Clean Energy businesses must have boosted the overall bottom line.

The Zacks Consensus Estimate for ED’s fourth-quarter earningsis pegged at 85 cents per share, suggesting a 13.3% increase from the year-ago quarter’s reported figure.

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc price-eps-surprise | Consolidated Edison Inc Quote

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Consolidated Edison this time. 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, which is the case here as you will see.

The company has an Earnings ESP of +2.26% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.

Stocks to Consider

Here are three Utility players that you may want to consider as they have the right combination of elements to post an earnings beat this season:

Ameren Corporation (AEE - Free Report) has an Earnings ESP of +1.00% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Ameren has a four-quarter average earnings surprise of 6.65%. The Zacks Consensus Estimate for Ameren’s fourth-quarter sales and earnings is pegged at $1.39 billion and 50 cents per share, respectively. AEE boasts a long-term earnings growth rate of 7.5%.

Public Service Enterprise Group Incorporated (PEG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank #3. It boasts a long-term earnings growth rate of 3.6%.

The Zacks Consensus Estimate for Public Service Enterprise Group’s fourth-quarter sales and earnings is pegged at $2.63 billion and 68 cents per share, respectively. PEG has a four-quarter average earnings surprise of 4.57%.

American Electric Power Company, Inc. (AEP - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank #2.

American Electric boasts a long-term earnings growth rate of 5.7%. The Zacks Consensus Estimate for the company’s fourth-quarter sales and earnings is pegged at $4.02 billion and 94 cents per share, respectively. AEP has a four-quarter average earnings surprise of 1.61%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.