We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Consolidated Edison (ED) Q4 Earnings: What Awaits the Stock?
Read MoreHide Full Article
New York-based Consolidated Edison, Inc. (ED - Free Report) is set to release fourth-quarter 2016 results after the closing bell on Feb 16.
Last quarter, the company delivered a positive earnings surprise of 0.67%. Moreover, Consolidated Edison has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 3.45%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Consolidated Edison has gradually been converting some of its operations to gas, which is safer for the environment. In fact, the company has been investing steadily in its renewable generation assets. In the first nine months of 2016, the company invested $1,281 million in renewable generation, and electric and gas transmission projects.
Per its earlier announcement, management will continue with its renewable investments in the fourth quarter of 2016 as well. This is in line with its earlier stated plan to invest $3,168 million in energy delivery systems and $985 million in renewable electric production projects in 2016. We expect the to-be-reported quarter’s results to reflect the continuance of this investment.
Moreover, the company's service territories witnessed above-average temperatures during the fourth quarter. This should in fact lead to increased electric sales in these regions, which in turn, is expected to boost the top line.
Again, for 2016, the company revised its earnings guidance to the range of $3.90 to $4.00 from the prior guidance of $3.85–$4.05, during the third-quarter earnings call.
For the fourth quarter, the Zacks Consensus Estimate for earnings reflects an increase of 7.10% year-over-year, while sales are anticipated to be up 16.86% to $3.16 billion.
However, disruption in the wholesale energy markets, stringent utility regulations and interruption in operation of its generating units, could be detrimental for Consolidated Edison’s growth.
Our proven model does not conclusively show that Consolidated Edison is likely to beat on 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. This is not the case here, as you will see below:
Zacks ESP: Consolidated Edison has an Earnings ESP of 0.00%. This is because the Most Accurate estimate of 65 cents stands in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Consolidated Edison’s Zacks Rank #4 (Sell), when combined with an Earnings ESP of 0.00%, makes our surprise prediction difficult for this quarter.
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 a few operators in the electric utility space that you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
SCANA Corporation has an Earnings ESP of +3.23% and a Zacks Rank #2. The company will report fourth-quarter results on Feb 16.
Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #2. The company is scheduled to release fourth-quarter results on Feb 24.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Consolidated Edison (ED) Q4 Earnings: What Awaits the Stock?
New York-based Consolidated Edison, Inc. (ED - Free Report) is set to release fourth-quarter 2016 results after the closing bell on Feb 16.
Last quarter, the company delivered a positive earnings surprise of 0.67%. Moreover, Consolidated Edison has outperformed the Zacks Consensus Estimate in three of the trailing four quarters, with an average positive surprise of 3.45%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
Consolidated Edison has gradually been converting some of its operations to gas, which is safer for the environment. In fact, the company has been investing steadily in its renewable generation assets. In the first nine months of 2016, the company invested $1,281 million in renewable generation, and electric and gas transmission projects.
Per its earlier announcement, management will continue with its renewable investments in the fourth quarter of 2016 as well. This is in line with its earlier stated plan to invest $3,168 million in energy delivery systems and $985 million in renewable electric production projects in 2016. We expect the to-be-reported quarter’s results to reflect the continuance of this investment.
Moreover, the company's service territories witnessed above-average temperatures during the fourth quarter. This should in fact lead to increased electric sales in these regions, which in turn, is expected to boost the top line.
Again, for 2016, the company revised its earnings guidance to the range of $3.90 to $4.00 from the prior guidance of $3.85–$4.05, during the third-quarter earnings call.
For the fourth quarter, the Zacks Consensus Estimate for earnings reflects an increase of 7.10% year-over-year, while sales are anticipated to be up 16.86% to $3.16 billion.
However, disruption in the wholesale energy markets, stringent utility regulations and interruption in operation of its generating units, could be detrimental for Consolidated Edison’s growth.
Consolidated Edison Inc Price and EPS Surprise
Consolidated Edison Inc Price and EPS Surprise | Consolidated Edison Inc Quote
Earnings Whispers
Our proven model does not conclusively show that Consolidated Edison is likely to beat on 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. This is not the case here, as you will see below:
Zacks ESP: Consolidated Edison has an Earnings ESP of 0.00%. This is because the Most Accurate estimate of 65 cents stands in line with the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Consolidated Edison’s Zacks Rank #4 (Sell), when combined with an Earnings ESP of 0.00%, makes our surprise prediction difficult for this quarter.
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 a few operators in the electric utility space that you may consider, as our model shows that they have the right combination of elements to post an earnings beat this quarter:
Spark Energy, Inc. will report fourth-quarter results on Mar 9. The company has an Earnings ESP of +14.43% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SCANA Corporation has an Earnings ESP of +3.23% and a Zacks Rank #2. The company will report fourth-quarter results on Feb 16.
Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #2. The company is scheduled to release fourth-quarter results on Feb 24.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>