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Consolidated Edison (ED) to Post Q4 Earnings: What's in Store?

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Consolidated Edison Inc. (ED - Free Report) is scheduled to release fourth-quarter and full-year 2023 earnings on Feb 15, after market close.

The company delivered an earnings surprise of 2.53% in the last reported quarter. It boasts a four-quarter average earnings surprise of 6.13%.

Factors to Note

During most of the fourth quarter, ED’s service territories experienced a warmer-than-normal weather pattern, while snow accumulations were observed for a few days. This might have negatively impacted electricity demand from the company’s customers during this fall, thereby hurting its fourth-quarter top-line performance.

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, a handful of storm activities in Consolidated Edison’s service areas during the October-December 2023 period might have caused outages for some of its customers. This, in turn, is likely to have affected ED’s quarterly top line.

The adverse weather might have also pushed up ED’s quarterly operating expenses to restore and repair the damages. This, along with higher interest expenses, is likely to have adversely impacted its bottom-line performance.

Nevertheless, the increased load growth, driven by vehicle electrification, is likely to have benefited Consolidated Edison’s earnings in the fourth quarter.

Q4 Expectations

The Zacks Consensus Estimate for fourth-quarter revenues and earnings per share is pegged at $3.74 billion and 98 cents, respectively. The figure for fourth-quarter earnings indicates an improvement of 21% from the year-ago quarter’s level, while that for revenues implies a 7.1% decline.

What Our Model Predicts

Our proven model does not conclusively predict 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 odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: The company’s Earnings ESP is -0.51%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Consolidated Edison carries a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank stocks here.

Stocks to Consider

Investors may consider the following utility players that have the right combination of elements to post an earnings beat this reporting cycle.

IDACORP (IDA - Free Report) has an Earnings ESP of +2.52% and a Zacks Rank #2 at present. The company delivered a four-quarter average earnings surprise of 13.25%.

The consensus estimate for IDA’s fourth-quarter sales is pegged at $429.8 million, indicating growth of 1.6% from that recorded in the prior-year quarter. The consensus mark for earnings is pegged at 60 cents per share.

Ameren (AEE - Free Report) has an Earnings ESP of +0.33% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 61 cents per share.

The consensus mark for AEE’s sales is pinned at $2.08 billion, implying an improvement of 1.8% from the year-ago quarter’s reported figure. The company delivered a trailing four-quarter average earnings surprise of 9.54%.

The Southern Company (SO - Free Report) has an Earnings ESP of +2.95% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter earnings is pinned at 59 cents per share, indicating a 126.9% increase from the year-ago quarter’s reported figure.

The Southern Company delivered a four-quarter average earnings surprise of 8.49%. The consensus mark for SO’s fourth-quarter sales is pegged at $7.74 billion, indicating growth of 9.8% from that recorded in the prior-year quarter.

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

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