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What's in Store for Consolidated Edison's (ED) Q2 Earnings?

Consolidated Edison Inc. ED is scheduled to release second-quarter 2020 results on Aug 6, after market close. In the last reported quarter, the company delivered a negative earnings surprise of 6.29%.

In the trailing four quarters, Consolidated Edison came up with a negative earnings surprise of 0.98%, on average.

Let’s discuss the factors that are likely to get reflected in the upcoming quarterly results.

Factors to Consider

During the second quarter, majority of Consolidated Edison’s service territories witnessed a favorable mix of weather conditions. New York witnessed very cold temperatures in April, which might have increased expenditures on heating for residential customers, as people had to stay indoors per the lockdown norms.

Toward the latter part of the second quarter, the company's service territories witnessed warmer-than-normal temperature. Overall, we expect the weather pattern to have boosted electricity demand, which in turn might have contributed to the company’s second-quarter revenue growth.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.85 billion, which indicates a 4% increase from the year-ago quarter’s reported figure.

Due to the ongoing COVID-19 crisis, the company had to deal with incremental costs and expenses related to information technology for facilitating teleworking, benefits for employees and dependents affected by COVID-19 and other additional costs incurred to support the safety and well-being of workers during the crisis.

These costs might have had an adverse impact on the company’s performance during the soon-to-be-reported quarter. The Zacks Consensus Estimate for second-quarter earnings is pegged at 54 cents per share, indicating a 6.9% decline from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Consolidated Edison this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here as elaborated below.

Earnings ESP: Consolidated Edison has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #4 (Sell).

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc price-eps-surprise | Consolidated Edison Inc Quote

Stocks to Consider

Here are a few players from the Utilities sector that have the right combination of elements to post an earnings beat this season.

American Water Works Company, Inc. AWK is set to release second-quarter earnings on Aug 5. It has an Earnings ESP of +1.18% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenterPoint Energy CNP has an Earnings ESP of +7.87% and a Zacks Rank #3. The company will announce second-quarter 2020 earnings on Aug 6.

Essential Utilities WTRG is set to release second-quarter 2020 numbers on Aug 5. It has an Earnings ESP of +7.75% and a Zacks Rank #3.

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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.

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