Consolidated Edison Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Consolidated Edison (NYS: ED) reported earnings on Jan. 19. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Consolidated Edison missed on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped, and earnings per share contracted significantly.

Gross margins improved, operating margins dropped, net margins contracted.

Revenue details
Consolidated Edison booked revenue of $3.0 billion. The four analysts polled by S&P Capital IQ expected a top line of $3.3 billion. Sales were 5.5% lower than the prior-year quarter's $3.1 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.74. The 11 earnings estimates compiled by S&P Capital IQ forecast $0.71 per share on the same basis. GAAP EPS of $0.65 for Q4 were 18% lower than the prior-year quarter's $0.80 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 38.5%, 200 basis points better than the prior-year quarter. Operating margin was 15.5%, 20 basis points worse than the prior-year quarter. Net margin was 6.4%, 100 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.5 billion. On the bottom line, the average EPS estimate is $1.04.

Next year's average estimate for revenue is $14.1 billion. The average EPS estimate is $3.72.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 619 members out of 652 rating the stock outperform, and 33 members rating it underperform. Among 219 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 211 give Consolidated Edison a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Consolidated Edison is underperform, with an average price target of $55.96.

Can your retirement portfolio provide you with enough income to last? You'll need more than Consolidated Edison. Learn about crafting a smarter retirement plan in our latest free report: "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement