Con Edison Beats on Earnings & Revs - Analyst Blog
Consolidated Edison Inc.
) posted first quarter 2014 earnings from ongoing operations of
$1.17 per share, beating the Zacks Consensus Estimate of $1.06 by
10.4%. The earnings beat came on the back of changes in the rate
plans of Con Edison's utility subsidiaries and a much
colder-than-normal winter. The quarterly result also increased 8.3%
from the year-ago figure of $1.08 per share.
Including the effects of its lease in/lease out transactions and the net mark-to-market effects of the competitive energy businesses (CEBs), the company registered earnings of $1.23 per share compared with 66 cents in the year-ago quarter.
Quarterly Operational Results
Consolidated Edison reported revenues of $3,789.0 million, up 19.0% year over year. The top line also surpassed the Zacks Consensus Estimate of $3,519.0 million by 7.7%. The results reflect higher electric, steam, gas as well as non-utility sales.
The company's largest top-line generator, Electric revenues were up 14.2% year over year. Gas revenues, Non-utility and steam revenues also increased 18.9%, 116.4% and 2.7%, respectively.
Total operating expenses were up 16.8% year over year to $3,104.0 million. Purchased power expenses increased 36.2%, fuel cost was up 6.1% and gas purchased for resale cost increased 60.0%. Depreciation and amortization expenses increased 4.0% year over year.
For this year, ConEd's earnings from ongoing operations are expected between $3.65 and $3.85 per share. The company expects to spend around $2,608 million for the year, the majority of which will be spent at its regulated utilities.
Cash at the end of Mar 31, 2014 was $102 million versus $674 million at the end of Dec 31, 2013. Long-term debt was $11.3 billion as of Mar 31, 2014 versus $10.5 billion at 2013 end.
American Electric Power Company Inc. ( AEP ) reported first quarter 2014 operating earnings of $1.15 per share, beating the Zacks Consensus Estimate of 91 cents by 26.4%. The quarterly figure also improved a whopping 43.8% from the year-ago adjusted profit of 80 cents per share. The upbeat performance was supported by favorable weather and high power prices.
CMS Energy Corp. ( CMS ) posted first-quarter 2014 earnings per share of 75 cents, surpassing the Zacks Consensus Estimate of 64 cents by 17.2%.
Entergy Corp. ( ETR ) reported first-quarter 2014 earnings of $2.29 per share, beating the Zacks Consensus Estimate by 8.5%.
Consolidated Edison succeeded in beating the Zacks Consensus Estimate on both the top and bottom line. The company is focused on energy efficiency initiatives while its aggressive oil-to-gas conversion program will lower costs and improve air quality. Also, the company continues to invest heavily in infrastructure improvement.
Consolidated Edison currently has a Zacks Rank #3 (Hold).
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