Consolidated Edison Inc. ( ED ) 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.
Guidance
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.
Financials
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.
Peer Reviews
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%.
Our Take
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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.