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Why Is Consolidated Edison (ED) Down 2.9% Since Its Last Earnings Report?

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It has been about a month since the last earnings report for Consolidated Edison Inc (ED - Free Report) . Shares have lost about 2.9% in that time frame.

Will the recent negative trend continue leading up to its next earnings release, or is ED due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Consolidated Edison Tops Q4 Earnings & Sales Estimates

Consolidated Edison reported fourth-quarter 2017 adjusted earnings of 80 cents per share that surpassed the Zacks Consensus Estimate of 78 cents by 2.6%. Reported earnings also improved 16% from the year-ago figure of 69 cents per share.

Excluding one-time adjustments, the company reported earnings of $1.63 per share, up from 68 cents in fourth-quarter 2016.

For 2017, Consolidated Edison reported adjusted earnings of $4.12 per share, compared with earnings of $3.99 in the prior year. Full-year earnings surpassed the Zacks Consensus Estimate of $4.09 by 0.7%.

Total Revenues

Consolidated Edison reported total revenues of $2,961 million in the fourth quarter, which surpassed the Zacks Consensus Estimate of $2,649 million by 11.8%. However, the top line improved 9.4% from the year-ago level of $2,707 million.

For 2017, the company generated revenues worth $12,033 million, which topped the Zacks Consensus Estimate of $11,750 million. Moreover, on a year-over-year basis, revenues dipped 0.3% from $12,075 million in the prior year.

Electric revenues came in at $2,039 million in the quarter, up 0.7% from the prior-year figure of $2,024 million. Gas revenues improved 21.1% to $540 million. Steam revenues rose 1.4% to $147 million. Non- utility revenues amounted to $235 million, up 155.4% from $92 million a year ago.

Operating Statistics

Total operating expenses in the quarter increased 8.4% to $2,417 million.

Gas purchased for resale, other operation and maintenance, depreciation and amortization, fuel and taxes, and other than income taxes was up 41.8%, 9.4%, 9.9%, 20.5% and 9.8%, respectively. Meanwhile, purchase power expenses decreased 11.2%.

Financials

Cash and temporary cash investments as of Dec 31, 2017 was $797 million compared with $776 million as of Dec 31, 2016.

Long-term debt was $14,731 million as of Dec 31, 2017 compared with $14,735 million at 2016 end.

At the end of 2017, cash from operating activities was $3,367 million compared with $3,459 million in the year-ago period.

Guidance

For 2018, the company expects earnings per share in the range of $4.15-$4.35.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month. There has been one revision higher for the current quarter compared to one lower.

VGM Scores

At this time, ED has a poor Growth Score of F. Its Momentum is doing a bit better with a D. The stock was also allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Our style scores indicate investors will probably be better served looking elsewhere.

Outlook

ED has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.




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