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Consolidated Edison's Earnings Beat Estimates, Lifts View - Analyst Blog

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Consolidated Edison Inc.ED posted first-quarter 2015 adjusted earnings of $1.25 per share, above both the Zacks Consensus Estimate as well as the year-ago earnings of $1.17 per share by 6.8%.

Quarterly earnings improved primarily attributable to the changes in rate plans of Con Edison's utility subsidiaries, along with growth in its gas delivery service related to oil-to-gas conversions, as well as lower operations and maintenance expenses.

Consolidated Edison Inc. - Quarterly EPS | FindTheCompany

Quarterly Results

Consolidated Edison reported total revenues of $3,616 million, short of the Zacks Consensus Estimate of $3,838 million by 5.8%. Revenues were down 4.6% year over year. The decline, resulting primarily from lower electric as well as gas revenues, was partially offset by higher steam and non-utility revenues.

Electric revenues were $2,135 million in the reported quarter, down from the prior-year figure of $2,237 million. Gas revenues plunged 17% to $732 million. Steam revenues increased 10%, while non-utility revenues escalated 13.7% to $374 million from $329 million a year ago.

Total operating expenses in the quarter declined 6.9% year over year to $2,890 million. Operating expenses went down due to lower purchased power, lower gas purchased for resale, and operations and maintenance (O&M) but partially offset by higher depreciation and amortization.

While purchased power, gas purchased for resale and O&M, and depreciation and amortization expenses dropped 8.2%, 34.5% and 1.3% respectively, depreciation and amortization expenses increased 6.9%.

Financials

Cash and cash equivalents at the end of Mar 31, 2015, were $117 million compared with $699 million at the end of Dec 31, 2014. Net cash flow from operating activity in the quarter was $480 million compared with $11 million a year ago.

Long-term debt was $11,694 million as of Mar 31, 2015, up from $11,631 million at 2014 end.

Guidance

For 2015, the company increased its earnings expectation to the range of $3.90 to $4.05 a share from the prior view of $3.80 to $4.00. This mainly reflects the cold weather in the first quarter that led to higher steam-delivery revenues.

Peer Releases

CMS Energy Corporation CMS reported first-quarter 2015 adjusted earnings per share of 73 cents, outpacing the Zacks Consensus Estimate of 66 cents by 10.6%. Quarterly earnings however declined 2.7% from the year-ago figure.

PG&E Corporation's PCG adjusted operating earnings per share of 87 cents in the first quarter of 2015 outpaced the Zacks Consensus Estimate of 68 cents by 27.9%. The reported figure surged 61.1% from the year-ago earnings. The upside was driven by the impact of expense recovery authorized in the utility's 2014 General Rate Case.

American Electric Power Company Inc. AEP reported first-quarter 2015 operating earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.11 by 15.3%.

Zacks Rank

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.

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