Is Consolidated Edison (ED) Poised To Beat On Q1 Earnings?

Zacks Investment Research | Apr 29, 2019 04:44AM ET

Consolidated Edison (NYSE:ED) is set to release first-quarter 2019 results on May 2, after the market closes.

In the last reported quarter, the company delivered a positive earnings surprise of 1.32%. Moreover, Consolidated Edison surpassed the Zacks Consensus Estimate in the trailing four quarters, the average beat being 4.19%.

Let’s see how things are shaping up prior to this announcement.

Why a Likely Positive Surprise?

Our proven model shows that Consolidated Edison is likely to beat earnings estimates in the first quarter. Notably, a stock needs to have both — a positive Consolidated Edison Inc Quote

Factors in Play

During the first quarter, major parts of New York experienced below-average and below- normal temperatures, subsequently witnessing cold winters characterized by heavy snowstorms. This, in turn, will result in higher household expenditure on heating, which may have a favorable impact on the company’s revenues in the upcoming results.

In line with this, the Zacks Consensus Estimate of $3.39 billion for the company’s first-quarter sales suggests a rise of 0.9% from the year-ago quarter’s reported figure.

Consolidated Edison’s regulated utilities continue to provide it with a stable earnings base coupled with positive outcomes from the rate hike appeal by its utilities. In 2018, the company's results of operations reflected lower income tax expenses compared to that in 2017. We anticipate to witness a similar trend in the upcoming quarterly results as well.

Considering this, the Zacks Consensus Estimate for Consolidated Edison’s first-quarter earnings of $1.38 calls for a marginal rise of 0.7% from the figure reported in the year-ago quarter.

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Written By: Zacks Investment Research

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