New York-based Consolidated Edison, Inc. (ED) is a leading provider of regulated electric, gas, and steam services in New York City, New Jersey, and Westchester County. Valued at $31.4 billion by market cap, Con Edison also invests in electric and natural gas transmission projects that offer customers access to diverse, low-cost energy supplies.
The utility major is expected to announce fourth-quarter results after the market closes on Thursday, Feb. 20. Ahead of the event, analysts expect Con Edison to report a non-GAAP profit of $0.97 per share, down 3% from $1.00 per share reported in the year-ago quarter. However, the company has surpassed Wall Street’s bottom-line projections in each of the past four quarters. Its adjusted EPS for the last reported quarter increased 3.7% year-over-year to $1.68, exceeding the consensus estimates by a notable 7.7%.
For the full fiscal 2024, Con Edison is expected to report an adjusted EPS of $5.35, up 5.5% from $5.07 in fiscal 2023. While in fiscal 2025, its earnings are expected to increase 5.1% year-over-year to $5.62 per share.
ED stock has gained 1.8% over the past 52 weeks, substantially underperforming the Utilities Select Sector SPDR Fund’s (XLU) 29.5% returns and the S&P 500 Index’s ($SPX) 25.8% surge during the same time frame.
Con Edison’s stock prices observed marginal gains after the release of its Q3 results on Nov. 7. The company reported a robust 5.7% year-over-year growth in total operating revenues to $4.1 billion which surpassed Wall Street’s projections by a notable 1.9%. Furthermore, due to a decrease in purchased power expenditure and impressive expense management, Con Edison’s operating income increased by a staggering 19.4% year-over-year to $862 million.
Furthermore, the company has observed a massive growth in cash flow generation. Its operating cash flows for the first three quarters of fiscal 2024 surged 95.1% year-over-year to $2.3 billion.
The consensus opinion on ED stock is neutral, with an overall “Hold” rating. Out of the 18 analysts covering the stock, four recommend a “Strong Buy,” 10 suggest “Hold,” and four advocate a “Strong Sell” rating. Its mean price target of $101.19 represents an 11.5% upside potential from current price levels.
