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Consolidated Edison's (ED) Q3 Earnings: What to Expect?

New York-based Consolidated Edison, Inc.ED is set to release third-quarter 2015 results after the closing bell on Nov 5, 2015. In the preceding quarter, Consolidated Edison had delivered a positive 18.46% earnings surprise. Let's see how things are shaping up prior to this announcement.

Factors at Play

Consolidated Edison follows a systematic capital investment plan for infrastructure development and the expansion of renewable assets. The company has a robust capital expenditure budget of around $9.4 billion for the 2015-2017 time frame. Roughly 88% of the planned investment is allocated for its regulated utility operations while the rest goes to its competitive business. The company is gradually converting some of its power producing units to natural gas, which is clean burning in nature. Consolidated Edison expects earnings for 2015 to fall in the range of $3.90 to $4.05 per share.

As for its renewable assets, during the third quarter, Consolidated Edison's unregulated subsidiary, ConEdison Development (CED), acquired a 50% interest in the 335-MW DC Panoche Valley Solar Farm, located in San Benito County, CA.

Consolidated Edison is in fact steadily investing in its renewable generation assets. It expects Copper Mountain Solar 3 (partial) in Neveda, Corcoran 2 and Atwell West in California, and Copper Mountain Solar 2 Phase 2 in Nevada to add total 105 MW to its renewable generation capacity over the long haul. Going forward, the company has set aside $1.1 billion for renewable and energy infrastructure projects over the 2015-2017 time period.

Earnings Whispers?

Our proven model does not conclusively show that Consolidated Edison is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here.

Zacks ESP: Consolidated Edison has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.48.

Zacks Rank: Consolidated Edison carries a Zacks Rank #3, which when combined with a 0.00% ESP makes a surprise prediction uncertain this season.

We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Stocks to Consider

Here are some companies you may want to consider as our model shows that they have the right combination of elements to post an earnings beat this quarter:

Alliant Energy Corp. LNT has an Earnings ESP of +3.17% and a Zacks Rank #3. It is scheduled to release third-quarter earnings on Nov 5, 2015.

Ameren Corporation AEE has an Earnings ESP of +1.53% and a Zacks Rank #2. It is scheduled to release third-quarter earnings on Nov 6, 2015.

Duke Energy Corp. DUK has an Earnings ESP of +0.66% and a Zacks Rank #3. It is scheduled to release third-quarter earnings on Nov 5, 2015.

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AMEREN CORP (AEE): Free Stock Analysis Report

CONSOL EDISON (ED): Free Stock Analysis Report

DUKE ENERGY CP (DUK): Free Stock Analysis Report

ALLIANT ENGY CP (LNT): Free Stock Analysis Report

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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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