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Consolidated Edison (ED) Q4 Earnings Beat, Revenues Down Y/Y

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Consolidated Edison Inc. (ED - Free Report) reported fourth-quarter 2018 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 76 cents by 1.3%. The bottom line, however, decreased 3.8% from 80 cents per share registered a year ago.

Barring a one-time benefit, the company posted GAAP earnings of $1.06 per share, reflecting a 35% decline year over year. This downside was on account of lower revenues as well as higher operating expenses.

For 2018, Consolidated Edison’s adjusted earnings came in at $4.33 per share, which outpaced the Zacks Consensus Estimate of $4.31 by 0.5%. The reported figure also improved 5.1% from $4.12 per share in the prior year.

Total Revenues

In the reported quarter, the company’s total revenues of $2,949 million outshined the Zacks Consensus Estimate of $2,802 million by 5.2%. However, the top line declined 0.4% from $2,961 million in the year-ago quarter.

For 2018, Consolidated Edison generated total revenues of $12.34 billion, which exceeded the Zacks Consensus Estimate of $12.14 billion by 1.6%. The top line also rose 2.5% from $12.03 million in the prior year.

Electric revenues totaled $2,001 million in the fourth quarter, down 1.9% from the prior-year figure of $2,039 million. Gas revenues were up 11.3% to $601 million. Steam revenues also rose 6.8% to $157 million. Non-utility revenues amounted to $190 million, down 19.1% from $235 million registered in the year-earlier quarter.

Operating Statistics

Total operating expenses in the fourth quarter rose 2% year over year to $2,423 million.

Purchase power, fuel expenses, gas purchased for resale, depreciation, and amortization as well as taxes and other than income taxes increased 2.6%, 31.9%, 36.6%, 10.2% and 0.2%, respectively, from the prior-year quarter numbers. However, other operations and maintenance declined 11.1% year over year.

Financials

Cash and temporary cash investments as of Dec 31, 2018, summed $895 million compared with $797 million as of Dec 31, 2017.

Long-term debt was $17,495 million as of Dec 31, 2018, compared with $14,731 million at 2017 end.

At the end of 2018, cash from operating activities amounted to $2,695 million compared with $3,367 million a year ago.

2019 Guidance

For 2019, the company expects adjusted earnings per share to be in the $4.25-$4.45 range. The Zacks Consensus Estimate for the same is pegged at $4.32, lower than the midpoint of the company’s guided range.

Zacks Rank

Consolidated Edison carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Entergy Corporation (ETR - Free Report) reported fourth-quarter 2018 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 48 cents by 25%.

Ameren Corporation’s (AEE - Free Report) fourth-quarter 2018 earnings of 28 cents per share from continuing operations missed the Zacks Consensus Estimate of 32 cents by 12.5%.

American Electric Power Co. (AEP - Free Report) reported fourth-quarter 2018 operating earnings of 72 cents per share, in line with the Zacks Consensus Estimate.

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