Consolidated Edison Inc.
) fourth-quarter 2012 earnings from continuing operations came in
at 69 cents, below both the Zacks Consensus Estimate of 73 cents
and year-ago quarterly earnings of 74 cents. The fall reflects
changes in the rate plans of utility subsidiaries and the effect
of milder winter weather on steam revenues.
On a reported basis, the company reported earnings of 71 cents
per share compared with 65 cents in the year-ago quarter.
Earnings from continuing operations for full year 2012 were
$3.75, down from the Zacks Consensus Estimate of $3.77, but above
the year-ago figure of $3.64. Including the net mark-to-market
effects of the competitive energy businesses, GAAP earnings per
share were $3.88 versus earnings per share of $3.59 in the
Consolidated Edison reported quarterly operating revenue of
$2.9 billion, a decrease of $14 million over the year-ago quarter
and $465 million lower than the Zacks Consensus Estimate. Of
this, Electric revenues rose $20 million to $2.0 billion, Gas
revenues rose $32 million to $458 million, Steam revenues rose $5
million to $181 million and Non-utility revenues fell $71 million
to $259 million.
In full year 2012, the company clocked revenue of $12.2
billion versus $12.9 billion in full year 2011. The top line also
failed to meet the Zacks Consensus Estimate of $13.8 billion.
Con Edison's utility subsidiaries, Consolidated Edison Company
of New York, Inc. (CECONY) and Orange and Rockland Utilities,
Inc. (O&R), in the fourth quarter of 2012, incurred response
and restoration costs for Superstorm Sandy of $363 million and
$98 million, respectively (including capital expenditures of $104
million and $14 million, respectively).
Consolidated Edison's quarterly earnings from ongoing
operations were $203 million compared with $219 million in the
year-ago quarter. Its quarterly net income was $207 million
compared with $190 million in the year-ago quarter.
Consolidated Edison announced that it is increasing its
dividend for the 39th consecutive year. The company declared a
quarterly dividend of 61.5 cents a share on its common stock,
payable Mar 15, 2013 to shareholders of record as of Feb 13,
2013. This comes to an annualized increase of 4 cents over the
previous annualized dividend of $2.42 a share.
Consolidated Edison expects its earnings from ongoing
operations for the year 2013 in the range of $3.65 to $3.85 per
share. This forecast reflects, among other things, estimated
costs relating to Superstorm Sandy that the utility subsidiaries
expect to incur in 2013 to restore the energy systems to normal
operating condition and that new rate plans are not expected to
become effective until 2014.
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 (O&R).
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 N.Y. state, northern N.J., and
northeastern Pa. 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 the industry average. Consolidated Edison
currently retains a Zacks Rank #3 (Hold).
Other Stocks to Consider
Other stocks worth considering in the utility industry are
), which carries a Zacks Rank #1 (Strong Buy), and
The AES Corporation
CMS Energy Corporation
), which carry a Zacks Rank #2 (Buy).
AMEREN CORP (AEE): Free Stock Analysis Report
AES CORP (AES): Free Stock Analysis Report
CMS ENERGY (CMS): Free Stock Analysis Report
CONSOL EDISON (ED): Free Stock Analysis
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