Consolidated Edison Inc. (ED) posted fourth-quarter 2014 earnings from ongoing operations of 58 cents per share, beating the Zacks Consensus Estimate of 56 cents by 3.6%. Earnings however dropped 15.9% from the year-ago figure of 69 cents per share.
Quarterly earnings fell due to lower steam revenues resulting from the unfavorable impact of weather on its steam delivery service. Lower electric and gas revenues along with higher operating expenses further triggered the fall.
Consolidated Edison Inc. - Earnings Surprise | FindTheBest 2014 earnings of $3.89 per share also surpassed the Zacks Consensus Estimate of $3.86 by 0.8%. Yearly earnings were up 2.4% year over year.
Quarterly Results
Consolidated Edison reported total revenue of $2,829 million, comfortably surpassing the Zacks Consensus Estimate of $1,998 million by 41.6%. The top line was however down 1.4% year over year. The decline, resulting primarily from lower electric, gas and steam revenues, was partially offset by higher non-utility revenues.
Electric revenues were $1,956 million in the reported quarter, down from the prior-year figure of $1,957 million. Steam revenues registered a fall of 11.2%. Gas revenues plunged 13.9% to $420 million, while non-utility revenues escalated 18.3% to $310 million from $262 million a year ago.
Total operating expenses in the quarter increased 7.9% year over year to $2,579 million. Operating expenses shot up due to higher purchased power, operations and maintenance, and depreciation and amortization expenses, but partially offset by lower fuel expenses.
While purchased power, operations and maintenance, and depreciation and amortization expenses rose 17.7%, 10% and 5.4% respectively, fuel costs dropped 10%.
Net interest expense in the reported quarter increased to $156 million from $144 million in the year-ago quarter.
Financials
Cash and cash equivalents at the end of Dec 31, 2014 were $699 million compared with $674 million at the end of Dec 31, 2013. Net cash flow from operating activity in 2014 was $2,831 million compared with $2,552 million in 2013.
Total investment as on Dec 31, 2014 stood at $816 million as compared to $461 million at the end of 2013.
Long-term debt was $11,631 million as of Dec 31, 2014, up from $10,489 million at 2013-end.
Guidance For 2015, Consolidated Edison expects earnings from ongoing operations in the range of $3.80 to $4.00 per share. The company expects to make capital investments of $2,912 million, which should enable it to meet this target.
Peer Releases
CMS Energy Corporation (CMS) reported fourth-quarter 2014 earnings per share of 35 cents on an adjusted basis. Quarterly earnings lagged the Zacks Consensus Estimate by a penny.
PG&E Corporation’s (PCG) adjusted operating earnings per share of 53 cents in the fourth quarter of 2014 missed the Zacks Consensus Estimate of 54 cents by a penny.
American Electric Power Company Inc. (AEP) reported fourth-quarter 2014 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 52 cents by 7.7%.
Zacks Rank
Consolidated Edison currently has a Zacks Rank #2 (Buy).
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