Back to top

Image: Bigstock

Consolidated Edison to Post Q3 Earnings: What's in the Cards?

Read MoreHide Full Article

Consolidated Edison, Inc. (ED - Free Report) is scheduled to release its third-quarter 2024 results on Nov. 7, after market close. The company delivered an earnings surprise of 7.27% in the last reported quarter.

See the Zacks Earnings Calendar to stay ahead of market-making news.

Consolidated Edison holds a four-quarter average earnings surprise of 6.40%. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Note Ahead of ED’s Q3 Earnings
 

Consolidated Edison’s service territories witnessed a warmer-than-normal temperature pattern during most of the July-September 2024 quarter. This is expected to have boosted electricity demand among the company’s customers for cooling purposes this summer, thereby favorably contributing to its third-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

Moreover, strong rate-based growth in prior quarters might have added impetus to ED’s third-quarter revenues.

However, severe rainfall and flash flooding, along with a few tornadoes, hit parts of the areas served by Consolidated Edison. This might have resulted in outages for its customers, thereby adversely impacting its overall revenue performance in the to-be-reported quarter, to some extent.

The Zacks Consensus Estimate for ED’s third-quarter sales is pinned at $4.02 billion, which suggests an increase of 3.8% from the year-ago reported number.

The severe weather conditions mentioned above might have damaged some of the company’s infrastructure, thereby pushing up its quarterly restoration costs. This, in turn, is likely to have hurt Consolidated Edison’s third-quarter earnings. Also, high interest expenses are likely to have adversely affected its bottom-line performance.

Nevertheless, solid sales expectation might have contributed favorably to ED’s quarterly earnings.

The Zacks Consensus Estimate for Consolidated Edison’s third-quarter earnings is pegged at $1.56 per share, which implies a decrease of 3.7% from the third-quarter 2023 reported figure.

What the Zacks Model Unveils for ED
 

Our proven model does not conclusively predict an earnings beat for ED this time. 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, which is not the case here, as you will see below.

Earnings ESP: ED has an Earnings ESP of -3.21%. 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 #3.

Stocks to Consider
 

Below, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

American Electric Power Company, Inc. (AEP - Free Report) is scheduled to report its third-quarter results on Nov. 6, before market open. It has an Earnings ESP of +0.94% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AEP’s third-quarter sales is pegged at $5.39 billion, which indicates a 1.8% improvement from the year-ago quarter’s figure. The Zacks Consensus Estimate for third-quarter earnings is pinned at $1.78 per share, which indicates year-over-year growth of 0.6%.

Avista (AVA - Free Report) is slated to report its third-quarter 2024 results on Nov. 6, before market open. It has an Earnings ESP of +33.33% and carries a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for AVA’s third-quarter earnings stands at 14 cents per share. The Zacks Consensus Estimate for third-quarter sales is pegged at $394.1 million, which implies a 3.8% rise from that reported in the prior-year quarter.

Pinnacle West Capital (PNW - Free Report) is slated to report its third-quarter 2024 results on Nov. 6, before market open. It has an Earnings ESP of +2.96% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for PNW’s third-quarter earnings stands at $3.35 per share. The Zacks Consensus Estimate for third-quarter sales is pegged at $1.68 billion, which implies a 2.6% increase from that reported in the prior-year quarter.

Published in