Consolidated Edison Inc.
) posted second quarter 2013 earnings from ongoing operations of
55 cents per share, missing the Zacks Consensus Estimate of 57
cents by 3.5%. The quarterly result also dropped 9.8% from the
year-ago profit of 61 cents per share.
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The weak numbers mainly reflect changes in the rate plans of the
company's utility subsidiaries. Again, the effects of weather on
steam revenues and increases in certain operations and
maintenance expenses, depreciation and property taxes adversely
affected the performance.
On a reported basis, the company registered earnings of 59 cents
per share compared with 73 cents in the year-ago quarter.
Although Consolidated Edison missed our expectation on the bottom
line, the company's top line increased 1.2% year over year to
$2,818.0 million, ahead of our expectation of $2,778 million.
Of the total quarterly revenue, the company's largest top-line
generator - Electric revenues -disappointed with a 3.4% drop.
However, Gas revenues climbed 22.0% and Steam revenues jumped
more than 42%, while Non-utility revenues increased 6% during the
Con Edison's utility subsidiaries, Consolidated Edison Company of
New York, Inc. (CECONY) and Orange and Rockland Utilities, Inc.
(O&R), as of Jun 30 2013, incurred response and restoration
costs for Superstorm Sandy of $457.0 million and $93.0 million,
respectively (including capital expenditures of $141.0 million
and $15.0 million, respectively).
Consolidated Edison reaffirmed its earnings from ongoing
operations forecast for 2013 in the range of $3.65 to $3.85 per
Consolidated Edison currently retains a Zacks Rank #3 (Hold).
Stocks worth accumulating now are
Huaneng Power International, Inc.
Integrys Energy Group, Inc.
). While Huaneng carries a Zacks Rank #1 (Strong Buy), the other
two stocks carry a Zacks Rank #2 (Buy).
At the Peers
Another utility company Public Service Enterprise Group Inc. or
PSEG reported second quarter 2013 earnings of 48 cents per share,
beating the Zacks Consensus Estimate of 46 cents by 4.3%. The
results were also up 11.6% year over year. The upside reflects
locational advantage for the merchant generating fleet of assets
and a sound operational performance.
Recently, diversified utility, NiSource Inc. posted net operating
earnings of 23 cents per share in the second quarter of 2013, a
penny or 4.2% lower than the Zacks Consensus Estimate. However,
earnings were 4.5% higher than the year-ago quarter.