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Con Ed (ED) Up 3.5% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Consolidated Edison (ED - Free Report) . Shares have added about 3.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Con Ed due for a pullback? 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 drivers.

Consolidated Edison Q2 Earnings Miss, Revenues Up Y/Y

Consolidated Edison reported second-quarter 2019 adjusted earnings of 58 cents per share, which missed the Zacks Consensus Estimate of 60 cents by 3.3%.

Barring one-time adjustments, the company posted GAAP earnings of 46 cents per share, reflecting a 23.3% year-over-year decline. This downside was primarily on account of higher operating expenses.

Total Revenues

In the reported quarter, the company’s total revenues of $2,744 million outshined the Zacks Consensus Estimate of $2,670 million by 2.8%. Moreover, the top line increased 1.8% from $2,696 million in the year-ago quarter.

Electric revenues totaled $1,971 million in the second quarter, up 1% from the prior-year quarter’s $1,951 million. Gas revenues declined 8.2% to $449 million. Also, steam revenues declined 6.25% to $90 million. Meanwhile, non-utility revenues amounted to $234 million, up 46.25% from $160 million in the year-earlier quarter.

Operating Statistics

Total operating expenses in the second quarter rose 1.1% year over year to $2,286 million.

Depreciation and amortization, other operations and maintenance, and taxes and other than income taxes increased 18.1%, 3.3% and 7%, respectively, from the prior-year quarter numbers. However, purchase power, fuel and gas purchased for resale declined 9.3%, 31.6% and 32.5% year over year, respectively.

Financials

Cash and temporary cash investments as of Jun 30, 2019, summed $831 million compared with $895 million as of Dec 31, 2018.

Long-term debt was $17,496 million as of Jun 30, 2019, compared with $17,495 million at 2018 end.

At the end of the first half of 2019, cash from operating activities amounted to $1,538 million compared with $1,040 in the first half of 2018.

2019 Guidance

For 2019, the company reaffirmed its adjusted earnings per share guidance at $4.25-$4.45. The Zacks Consensus Estimate for full-year earnings pegged at $4.35 lies exactly at the midpoint of the company’s guided range.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended upward during the past month.

VGM Scores

At this time, Con Ed has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

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

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Notably, Con 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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