Consolidated Edison, Inc. (ED - Free Report) is set to report second-quarter 2018 results, after the market closes on Aug 2.
In the last reported quarter, the company delivered a positive earnings surprise of 3.01%. However, Consolidated Edison lagged the Zacks Consensus Estimate in two of the past four quarters, the average miss being 0.98%.
Let’s see how things are shaping up for this earnings season.
Factors at Play
At the onset of the second quarter, the company's major service territories witnessed colder-than-normal temperatures, alongside witnessing a snowstorm in April. This is likely to result in higher household expenditure on heating and, in turn, will most likely boost the revenues for this electricity provider.
Also, midway during the quarter, the company’s service territories witnessed warmer-than-normal temperature, which again tend to spur electricity demand. Thus, climate during the quarter remained favorable for
the company’s revenue growth. In line with this, the Zacks Consensus Estimate for the company’s second-quarter revenues of $2,642 million reflects an improvement of 0.3% year over year.
In May, the company invested $1.5 billion in its electric delivery systems, using new technologies in New York City and Westchester County. Such massive investments made in the quarter may drive its expenditures, which, in turn, may weigh on its bottom line. As a result, the Zacks Consensus Estimate for the company’s second-quarter earnings of 57 cents reflects a decline of 1.7% year over year.
Consolidated Edison Inc Price and EPS Surprise