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What's in Store for Consolidated Edison (ED) in Q1 Earnings?

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Consolidated Edison Inc. (ED - Free Report) is scheduled to release first-quarter 2022 results on May 5 after market close.

In the last reported quarter, the company delivered an earnings surprise of 17.65%. Consolidated Edison came up with a four-quarter average negative earnings surprise of 1.38%.

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

Factors to Consider

During most of the first quarter, ED’s service territories witnessed mixed weather patterns. While some parts witnessed colder-than-normal temperatures with moderate-to-heavy snowfall, some other parts observed average temperature.

So, the overall impact of temperature on Consolidated Edison’s first-quarter revenues is expected to have been neutral.

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc Price and EPS Surprise

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

Also, positive outcomes from timely rate revisions are likely to have aided Consolidated Edison’s overall performance in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.76 billion, indicating a 2.2% rise from the year-ago quarter’s reported figure.

Restoration costs related to ice storms in ED’s service territories, 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 brighter note, positive returns from the company’s Clean Energy businesses as well as other investments must have boosted the overall bottom line.

The Zacks Consensus Estimate for ED’s first-quarter earnings is pegged at $1.51 per share, suggesting a 5.6% increase from the year-ago quarter’s reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict 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. However this is not the case here.

The company has an Earnings ESP of -0.33% and carries a Zacks Rank #2. 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 Utilities players you may want to consider, as these have the right combination of elements to post an earnings beat this season:

Avangrid (AGR - Free Report) has an Earnings ESP of +10.15% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6%.

The Zacks Consensus Estimate for Avangrid’s first-quarter revenues and earnings is pegged at $1.60 billion and 35 per cents share, respectively. AGR has a four-quarter average earnings surprise of 3.56%.

Telephone and Data Systems (TDS - Free Report) has an Earnings ESP of +34.62% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Telephone and Data Systems’ first-quarter revenues and earnings is pegged at $1.34 billion and 26 cents, respectively. TDS has a four-quarter average earnings surprise of 42.61%.

Dominion Energy (D - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3. The stock boasts a long-term earnings growth rate of 6.1%.

The Zacks Consensus Estimate for Dominion Energy’s first-quarter revenues and earnings is pegged at $4.28 billion and $1.19, respectively. D has a four-quarter average earnings surprise of 1.09%.

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