Consolidated Edison (ED) Q2 Earnings Top, Revenues Rise Y/Y

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Consolidated Edison, Inc. ED reported second-quarter 2024 adjusted earnings of 59 cents per share, which beat the Zacks Consensus Estimate of 55 cents per share by 7.3%. However, the bottom line declined 3.3% from 61 cents recorded in the prior-year quarter.

The company posted GAAP earnings of 58 cents per share compared with 65 cents per share in the second quarter of 2023.

The year-over-year deterioration can be attributed to higher operating expenses and interest expenses compared to the prior-year quarter’s comparable level.

Total Revenues

In the reported quarter, Consolidated Edison's total operating revenues of $3.22 billion surpassed the Zacks Consensus Estimate of $3.08 billion by 4.5%. The top line also increased 9.4% from $2.94 billion reported in the year-ago quarter. The upside was driven by higher gas, steam and electric revenues.

Consolidated Edison Inc Price, Consensus and EPS Surprise

Consolidated Edison Inc Price, Consensus and EPS Surprise
Consolidated Edison Inc Price, Consensus and EPS Surprise

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

Electric revenues totaled $2.55 billion in the second quarter, which increased by 10.7% from the year-ago quarter’s figure of $2.30 billion. Gas revenues were up 1.9% to $582 million.

Steam revenues were up 27.5% to $88 million. Non-utility revenues were nil compared with $1 million in the year-earlier quarter.

Operating Statistics

Total operating expenses in the second quarter increased 8.5% year over year to $2.90 billion.

Purchase power costs rose 12.3%. Other operations and maintenance expenses increased 13.9%. Meanwhile, depreciation and amortization expenses jumped 3.2%. Taxes, other than income taxes, went up 9.2% year over year. Fuel expenses decreased 16.7% year over year, and the cost of gas purchased for resale came down 31.3%.

The company’s second-quarter operating income went up 12.7% year over year to $320 million.

Financials

Cash and temporary cash investments as of Jun 30, 2024 were $1.50 billion compared with $1.19 billion as of Dec 31, 2023.

The company’s long-term debt was $23.31 billion as of Jun 30, 2024 compared with the $21.93 billion long-term debt as of the 2023 end.

As of Jun 30, 2024, cash from operating activities amounted to $1.91 billion compared with $1.16 billion generated in the prior year.

Guidance

Consolidated Edison reaffirmed its 2024 guidance. It still expects to generate adjusted earnings per share (EPS) in the range of $5.20-$5.40. The Zacks Consensus Estimate for 2024 earnings is pegged at $5.31 per share, just above the midpoint of the company’s guided range.

Zacks Rank

Consolidated Edison currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Utility Releases

Public Service Enterprise Group Incorporated PEG, or PSEG, reported second-quarter 2024 adjusted earnings of 63 cents per share, which missed the Zacks Consensus Estimate of 64 cents by 1.6%. Earnings also declined 10% from the prior-year quarter’s reported figure.

Operating revenues in the second quarter totaled $2.42 billion, which beat the Zacks Consensus Estimate of $2.4 billion by 18.7%. The top line also increased 0.1% from the year-ago quarter’s figure.

Edison International EIX reported second-quarter 2024 adjusted earnings of $1.23 per share, which increased 21.8% from $1.01 in the year-ago quarter. The Zacks Consensus Estimate was pegged at $1.05.

Edison International's second-quarter operating revenues totaled $4.34 billion, which beat the Zacks Consensus Estimate of $4.03 billion by 7.5%. The top line also increased 9.4% from the year-ago quarter’s figure of $3.96 billion.

PG&E Corporation PCG reported a second-quarter 2024 adjusted EPS of 31 cents, which surpassed the Zacks Consensus Estimate of 30 cents by 3.3%. The bottom line also improved 34.8% from the year-ago quarter’s reported figure.

PCG reported second-quarter total revenues of $5.99 billion, up 13.2% from $5.29 billion registered in the year-ago period. Operating revenues also surpassed the Zacks Consensus Estimate of $5.83 billion by 2.7%.

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