Why Is Consolidated Edison (ED) Up 5.7% Since the Last Earnings Report?

It has been about a month since the last earnings report for Consolidated Edison Inc ED. Shares have added about 5.7% in that time frame, outperforming the market.

Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Consolidated Edison Tops Q1 Earnings, Sales, Keeps View

Consolidated Edisonposted first-quarter 2017 adjusted earnings of $1.27 per share that beat the Zacks Consensus Estimate of $1.19 by 6.7%. Reported earnings were also up 7.6% from the year-ago figure of $1.18.

Total Revenue

Consolidated Edison reported total revenue of $3,228 million in the first quarter, which exceeded the Zacks Consensus Estimate of $3,061 million by 5.5%. Revenues increased 2.3% from the year-ago level of $3,156 million.

Electric revenues came in at $1,934 million in the reported quarter, up 1.2% from the prior-year figure of $1,912 million. Gas revenues improved 27.5% to $862 million. Steam revenues increased 15.5% to $298 million, while non-utility revenues amounted to $134 million, down 56.8% from $310 million a year ago.

Operating Statistics

Total operating expenses in the quarter decreased 2.3% to $2,457 million due to lower purchase power and other operations and maintenance expenses.

While gas purchased for resale, depreciation and amortization, fuel and taxes and other than income taxes increased a respective 103.1%, 10.8%, 40.8% and 6.3%, purchase power, and other operations and maintenance expenses decreased 44.3% and 0.9%, respectively.

Financials

Cash and temporary cash investments as of Mar 31, 2017 were $67 million compared with $776 million as of Dec 31, 2016.

Long-term debt was $14,829 million as of Mar 31, 2017 compared with $14,735 million at 2016 end.

In the first quarter, cash from operating activities was $380 million compared with $458 million in the year-ago period.

Guidance

For 2017, the company reaffirmed its earnings per share in the range of $3.95–$4.15.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

Consolidated Edison Inc Price and Consensus

 

Consolidated Edison Inc Price and Consensus | Consolidated Edison Inc Quote

VGM Scores

Currently, Consolidated Edison's stock has a subpar Growth Score of 'D', though it is lagging a bit on the momentum front with a 'F'. Charting a somewhat similar path, the stock was allocated a grade of 'C' on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of 'D'. If you aren't focused on one strategy, this score is the one you should be interested in.

Zacks' style scores indicate that the company's stock is suitable solely for value investors.

Outlook

The stock has a Zacks Rank #2 (Buy). We are expecting an above average return from the stock in the next few months.