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Consolidated Edison (ED) to Post Q2 Earnings: What's in Store?

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Consolidated Edison, Inc. (ED - Free Report) is scheduled to release its second-quarter 2024 results on Aug 1 after market close. The company delivered an earnings surprise of 13.76% in the last reported quarter.

Consolidated Edison holds a four-quarter average earnings surprise of 5.88%.  Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors at Play

The majority of Consolidated Edison’s service territories witnessed a warmer-than-normal temperature pattern during most of the April-June 2024 quarter. This is expected to have boosted electricity demand among the company’s customers for cooling purposes, thereby favorably contributing to its second-quarter top-line performance.

Consolidated Edison Inc Price and EPS Surprise

Consolidated Edison Inc Price and EPS Surprise

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

Moreover, strong rate-based growth in prior quarters may have added impetus to ED’s second-quarter revenues.

However, thunderstorms and tornadoes hit parts of the areas served by Consolidated Edison. This may have resulted in outages for its customers, adversely impacting its overall revenue performance in the to-be-reported quarter.

The Zacks Consensus Estimate for ED’s second-quarter sales stands at $3.07 billion, which suggests an increase of 4.2% from the year-ago reported number.

The severe weather conditions mentioned above may have damaged some of the company’s properties, thereby increasing its quarterly restoration costs. This, in turn, is likely to have hurt Consolidated Edison’s second-quarter earnings. Also, high interest expenses are likely to have affected its bottom-line performance.

The Zacks Consensus Estimate for Consolidated Edison’s second-quarter earnings is pegged at 55 cents per share, which implies a decrease of 9.8% from the second-quarter 2023 reported figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for ED this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as you will see below.

Earnings ESP: ED has an Earnings ESP of -2.28%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Consolidated Edison carries a Zacks Rank #4 (Sell).

Stocks to Consider

Below, we have mentioned the following players from the same industry that have the right combination of elements to beat on earnings in the upcoming releases.

Xcel Energy Inc. (XEL - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +6.12% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for XEL’s second-quarter earnings stands at 49 cents per share. The Zacks Consensus Estimate for XEL Energy’s second-quarter sales is pegged at $3.23 billion, which implies a 6.8% increase from that reported in the prior-year quarter.

The AES Corporation (AES - Free Report) is expected to report its second-quarter 2024 results on Aug 1 after market close. It has an Earnings ESP of +10.20% and carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for AES’ second-quarter earnings stands at 33 cents per share, which suggests a 57.1% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $3.17 billion, which implies a 4.7% increase from that reported in the prior-year quarter.

The Southern Company (SO - Free Report) is slated to report its second-quarter 2024 results on Aug 1 before market open. It has an Earnings ESP of +0.38% and a Zacks Rank of 3 at present.

The Zacks Consensus Estimate for SO’s second-quarter earnings stands at 91 cents per share, which calls for a 15.2% improvement from the second-quarter 2023 reported figure. The Zacks Consensus Estimate for second-quarter sales is pegged at $6.27 billion, which implies a 9.1% increase from that reported in the prior-year quarter.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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