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What's in Store for Consolidated Edison (ED) in Q1 Earnings?

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Consolidated Edison Inc. (ED - Free Report) is scheduled to release first-quarter 2021 results on May 6, after market close. In the last-reported quarter, the company delivered an earnings surprise of 4.17%.

In the trailing four quarters, Consolidated Edison came up with an average earnings surprise of 1.75%.

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

Factors to Consider

During most part of the first quarter, majority of Consolidated Edison’s service territories witnessed colder-than-normal temperature, accompanied by record snowfall in the month of February. This might have boosted electricity demand from the company’s customers for heating purposes, which in turn must have contributed to its quarterly revenue growth.

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc Price and EPS Surprise

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

 

The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.51 billion, which indicates 8.5% increase from the year-ago quarter’s reported figure.

A massive snowstorm affected the company’s service areas in February, bringing strong wind gusts and record snowfall. These in turn might have damaged some of this utility’s properties, thereby hampering smooth electricity flow and pushing up expenses for restoration work. Moreover, the company has been incurring incremental expenses related to information technology for facilitating teleworking, as a result of the COVID-19 impact.

Such expenses might have had an adverse impact on the company’s bottom-line performance during the soon-to-be-reported quarter, thereby partially offsetting the benefits of the top line growth projection.

The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.36 per share, indicating a 1.5% hike from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model predicts 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.

Earnings ESP: Consolidated Edison has an Earnings ESP of +0.06%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Here are some more players from the Utilities sector with the right combination of elements to post an earnings beat in the to-be-reported quarter.

CenterPoint Energy (CNP - Free Report) has an Earnings ESP of +4.52% and a Zacks Rank #3.

UGI Corp (UGI - Free Report) has an Earnings ESP of +1.74% and a Zacks Rank #3.

Duke Energy (DUK - Free Report) has an Earnings ESP of +0.16% and a Zacks Rank #3.

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