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Consolidated Edison (ED) to Post Q3 Result: What's in Store?

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Consolidated Edison Inc (ED - Free Report) is scheduled to release third-quarter 2019 results on Nov 4, after market close.

In the last reported quarter, the company delivered a negative earnings surprise of 3.33%.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

During the third quarter, majority of Consolidated Edison’s service territories witnessed warmer-than-expected weather. This might have led to higher electricity demand for cooling, which in turn is expected to have contributed to the company’s third-quarter revenue growth.

In line with this, the Zacks Consensus Estimate for third-quarter revenues is pegged at $3.5 billion that indicates 5.1% increase from the year-ago quarter’s reported figure.

To support its grid on summer days, Consolidated Edison has been installing battery systems in its service territories, since middle of the second quarter. These battery storage systems enable the company to utilize the surplus electricity in the peak hours and ensure power generation in an effective manner. This is expected to have driven margins and in turn contributed to the bottom line.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $1.59 per share that indicates 1.9% increase from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model doesn’t conclusively predict an earnings beat for Consolidated Edison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that’s not the case here.

Earnings ESP: The company’s Earnings ESP is -0.52%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Consolidated Edison carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Consolidated Edison Inc Price and EPS Surprise

 

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc price-eps-surprise | Consolidated Edison Inc Quote

 

Stocks to Consider

Here some companies that you may consider from the same industry as these have the right combination of elements to post an earnings beat in the to-be-reported quarter.

PNM Resources (PNM - Free Report) is lined up to release third-quarter 2019 results on Nov 1. It has an Earnings ESP of +1.99% and a Zacks Rank of #2.

CenterPoint Energy (CNP - Free Report) is set to release third-quarter 2019 results on Nov 7. It has an Earnings ESP of +0.12% and has a Zacks Rank #3.

PPL Corporation (PPL - Free Report) is scheduled to release third-quarter 2019 results on Nov 5. It has an Earnings ESP of +1.37% and a Zacks Rank of #3.

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