New York-based Consolidated Edison, Inc. (ED) is a leading provider of regulated electric, gas, and steam services in New York City and Westchester County. With a market cap of $32.5 billion, the company's operations extend to southeastern New York and northern New Jersey, delivering energy solutions to industrial, commercial, residential, and government sectors. The utility company is expected to announce its Q2 earnings after the market closes on Thursday, August 1.
Ahead of the event, analysts expect Consolidated Edison to report a profit of $0.55 per share, down 9.8% from $0.61 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS projections in each of the past four quarters. Its EPS for the last reported quarter grew 17.5% to $2.15, exceeding the consensus estimates by 13.8%.
Looking ahead to fiscal 2024, analysts expect Consolidated Edison to report an EPS of $5.33, up 5.1% from $5.07 in fiscal 2023. In fiscal 2025, its EPS is expected to grow 5.3% annually to $5.61.
ED stock is up 3.5% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 16.2% gains and the S&P 500 Utilities Sector SPDR’s (XLU) 10.6% returns over the same time frame.
Consolidated Edison had a rocky ride in 2024, impacting its stock prices. It grappled with major hurdles like a hefty data breach affecting around 500,000 customers and contractors, and challenges in overhauling its old infrastructure. Despite these issues and a hefty push toward cleaner energy with projects like the Reliable Clean City transmission line, the stock remained resilient.
Despite these challenges, ED stock surged in the subsequent trading sessions, continuing to climb after the Q1 earnings release on May 2. While revenue fell short of expectations at $4.3 billion, adjusted EPS marked a mid-teen annual increase, surpassing estimates – keeping the stock in the green, which reflected investor confidence amid the challenges.
The consensus opinion on Consolidated Edison stock is neutral, with a “Hold” rating overall. Out of the 16 analysts covering the stock, two recommend a “Strong Buy,” 10 advise a “Hold,” and four suggest a “Strong Sell” rating. Over the past two months, a new “Strong Buy” recommendation has been added.
Although ED is currently trading above its average target price of $90.20, the Street-high target of $103 indicates a potential upside of 9.4% from current price levels.
On the date of publication, Sristi Jayaswal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
