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Consolidated Edison (ED) Q4 Earnings: A Beat in the Cards?

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We expect Consolidated Edison, Inc. (ED - Free Report) to beat earnings expectation when it reports fourth-quarter 2017 results on Feb 15, after the closing bell.

The company surpassed the Zacks Consensus Estimate in two of the past four quarters, with an average beat of 0.06%.

Why a Likely Positive Surprise

Our proven model shows that Consolidated Edison is likely to beat earnings this quarter. Notably, 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. Consolidated Edison possesses both these attributes, as mentioned below:

Zacks ESP: Consolidated Edison has an Earnings ESP of +0.64%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Consolidated Edison currently carries a Zacks Rank #3, which along with a positive earnings ESP increases the chance of surprise prediction.

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

Factors at Play

Of late Consolidated Edison has been incorporating renewable energy in its grid at an increasing rate. As a result, its third-quarter results reflected higher revenues from renewable electric production projects. We expect the company’s fourth-quarter results to reflect the same.

Consolidated Edison’s regulated based utilities provide it with a stable earnings base. The Zacks Consensus Estimate for the company’s fourth-quarter earnings of 78 cents per share reflects an improvement of 13% year over year.

Moreover, the company's service territories witnessed colder-than-normal temperatures during the quarter. This is likely to result in higher household expenditure on heating and, in turn, will most likely boost the revenues for this energy provider.

 

Consolidated Edison Inc Price and EPS Surprise

 

Consolidated Edison Inc Price and EPS Surprise | Consolidated Edison Inc Quote

 

Other Stocks That Warrant a Look

Here are some other companies from the Zacks Utility sector you may want to consider as our model shows that these also have the right combination of elements to post an earnings beat this quarter:

NiSource (NI - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #3. It is slated to report upcoming quarter results on Feb 20. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +7.62% and carries a Zacks Rank #3. It is slated to report upcoming quarter results on Feb 22.

Entergy Corporation (ETR - Free Report) has an Earnings ESP of +13.74% and carries a Zacks Rank #3. It is slated to report upcoming quarter results on Feb 23.

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