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Consolidated Edison, Inc. ED is scheduled to release its third-quarter 2024 results on Nov. 7, after market close. The company delivered an earnings surprise of 7.27% in the last reported quarter.
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Consolidated Edison holds a four-quarter average earnings surprise of 6.40%. Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note Ahead of ED’s Q3 Earnings
Consolidated Edison’s service territories witnessed a warmer-than-normal temperature pattern during most of the July-September 2024 quarter. This is expected to have boosted electricity demand among the company’s customers for cooling purposes this summer, thereby favorably contributing to its third-quarter top-line performance.
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 might have added impetus to ED’s third-quarter revenues.
However, severe rainfall and flash flooding, along with a few tornadoes, hit parts of the areas served by Consolidated Edison. This might have resulted in outages for its customers, thereby adversely impacting its overall revenue performance in the to-be-reported quarter, to some extent.
The Zacks Consensus Estimate for ED’s third-quarter sales is pinned at $4.02 billion, which suggests an increase of 3.8% from the year-ago reported number.
The severe weather conditions mentioned above might have damaged some of the company’s infrastructure, thereby pushing up its quarterly restoration costs. This, in turn, is likely to have hurt Consolidated Edison’s third-quarter earnings. Also, high interest expenses are likely to have adversely affected its bottom-line performance.
Nevertheless, solid sales expectation might have contributed favorably to ED’s quarterly earnings.
The Zacks Consensus Estimate for Consolidated Edison’s third-quarter earnings is pegged at $1.56 per share, which implies a decrease of 3.7% from the third-quarter 2023 reported figure.
What the Zacks Model Unveils for ED
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 -3.21%. 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 #3.