Consolidated Edison Inc. ED posted second-quarter 2015 adjusted earnings of 77 per share, beating the Zacks Consensus Estimate of 65 cents by 18.5% and increasing 20.3% from 64 cents a year ago.
Quarterly earnings improved primarily due to lower operating expenses as well as changes in the rate plans of Con Edison's utility subsidiaries.
Quarterly Results
Consolidated Edison reported total revenues of $2,788 million, short of the Zacks Consensus Estimate of $3,074 million by 9.3%. Revenues were down 4.2% year over year. The decline, resulting primarily from lower electric, gas as well as steam revenues, was partially offset by higher non-utility revenues.
Electric revenues were $2,040 million in the reported quarter, down from the prior-year figure of $2,134 million. Gas revenues plunged 73.2% to $324 million. Steam revenues decreased 2%, while non-utility revenues escalated 15.5% to $328 million from $284 million a year ago.
Total operating expenses in the quarter declined 7.4% year over year to $2,316 million. Operating expenses went down due to lower purchased power, gas purchased for resale, and fuel expense but were partially offset by higher depreciation and amortization.
While purchased power, gas purchased for resale and fuel expenses dropped 15.7%, 41.1% and 8.8% respectively, depreciation and amortization expenses increased 4.2%.
Financials
Cash and cash equivalents at the end of Jun 30, 2015, were $709 million compared with $699 million at the end of Dec 31, 2014. Net cash flow from operating activity in the first half of 2015 was $1,202 million compared with $882 million a year ago.
Long-term debt was $10,865 million as of Jun 30, 2015, almost on par with $10,864 million at 2014 end.
Guidance
For 2015, the company maintained its earnings expectation in the range of $3.90 to $4.05 a share.
Peer Releases
PG&E Corp.’s PCG adjusted operating earnings per share of 91 cents in the second quarter of 2015 outpaced the Zacks Consensus Estimate of 77 cents by 18.2%. The reported figure also surged 31.9% from the year-ago earnings.
CMS Energy Corp. CMS reported second-quarter 2015 adjusted earnings per share of 25 cents, missing the Zacks Consensus Estimate of 33 cents by 24.2%. Quarterly earnings also declined 16.7% from the year-ago figure primarily due to lower revenues.
American Electric Power Co., Inc. AEP reported second-quarter 2015 operating earnings of 88 cents per share, beating the Zacks Consensus Estimate of 81 cents by 8.6%.
Zacks Rank
Consolidated Edison currently has a Zacks Rank #3 (Hold).
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