Consolidated Edison Inc.
) first-quarter 2012 earnings from continuing operations came in at
$1.01, below the Zacks Consensus Estimate of $1.04. This follows in
the footsteps of the year-ago quarter when earnings also
underperformed the market expectations. However, results compared
favorably with earnings from continuing operations of 99 cents in
the year-ago quarter.
On a reported basis, the company reported earnings of 95 cents
per share compared with $1.07 in the year-ago quarter. Earnings
were lower year-over-year due to changes in the rate plans of
utility subsidiaries and the effects of the milder winter weather
on steam revenues.
The GAAP EPS variation of 12 cents year-over-year was primarily
due to higher mark-to-market losses in the Competitive Energy
In the reported quarter Con Edison of New York (CECONY)
benefited by 12 cents per share as higher rates authorized higher
recovery of costs and 2 cents from other items. This was partially
offset by 10 cents from higher operations and maintenance expense,
and 3 cents from higher depreciation. The upshot was a penny upside
year over year.
The Orange and Rockland utilities' EPS was flat year-over-year.
In the Competitive Energy businesses owing to higher mark-to-market
losses, EPS fell by 13 cents while the parent company reported flat
Consolidated Edison reported operating revenue of $3.1 billion,
a decrease of $271 million over the year-ago quarter and $412
million lower than the Zacks Consensus Estimate. Of this Electric
revenues were flat at $1.9 billion. However Gas revenues fell $110
million to $645 million; Steam revenues fell $62 million to $263
million; and Non-utility revenues fell $92 million to $308
Consolidated Edison's earnings from ongoing operations were $295
million compared with $289 million in the year-ago quarter. Its net
income was $277 million compared with $311 million in the year-ago
Consolidated Edison expects its EPS from ongoing operations for
fiscal 2012 in the range of $3.65 - $3.85.
New York City-based Consolidated Edison is a diversified utility
holding company with subsidiaries engaged in both regulated and
unregulated businesses. Consolidated Edison's regulated businesses
operate through two subsidiaries - Consolidated Edison Company of
New York (CECONY) and Orange and Rockland Utilities
Consolidated Edison of New York is a regulated utility in New
York City and Westchester County. O&R serves electric and gas
customers in southeastern New York State, northern New Jersey, and
northeastern Pennsylvania. Consolidated Edison's unregulated
businesses operate through three subsidiaries - Consolidated Edison
Development (engaged in infrastructure development), Consolidated
Edison Energy (supplies energy in the wholesale market) and
Consolidated Edison Solutions (provides retail energy).
Consolidated Edison is a predominantly regulated utility with
multi-year rate plans for its services. However the stock is
currently trading at a premium per the current fiscal earnings
estimates vis-à-vis its peers like
American Electric Power Company Inc.
). Consolidated Edison currently retains a Zacks #3 Rank, which
translates into a short-term Hold rating. Considering the
fundamentals, we are maintaining our Neutral recommendation on the
AMER ELEC PWR (AEP): Free Stock Analysis Report
CONSOL EDISON (ED): Free Stock Analysis Report
EDISON INTL (EIX): Free Stock Analysis Report
To read this article on Zacks.com click here.