How Will Con Edison (ED) Stock React to Today's Earnings Release?
NEW YORK (TheStreet) -- Consolidated Edison (ED) - Get Report is scheduled to report its 2015 third quarter earnings results after the market close this afternoon.
Analysts are expecting the electric services company to post a year over year decline in earnings but an increase in revenue.
Con Edison has been forecast to post earnings of $1.48 per share on revenue of $3.51 billion for the most recent quarter by analysts surveyed by Thomson Reuters.
Last year, the company reported earnings of $1.49 per share on revenue of $3.39 billion for the 2014 third quarter.
Shares of Con Edison are down 0.21% to $65.78 in early afternoon trading on Thursday.
Separately, TheStreet Ratings team rates CONSOLIDATED EDISON INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate CONSOLIDATED EDISON INC (ED) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels, growth in earnings per share and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Multi-Utilities industry average. The net income increased by 2.8% when compared to the same quarter one year prior, going from $213.00 million to $219.00 million.
- CONSOLIDATED EDISON INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, CONSOLIDATED EDISON INC increased its bottom line by earning $3.71 versus $3.61 in the prior year. This year, the market expects an improvement in earnings ($4.00 versus $3.71).
- After a year of stock price fluctuations, the net result is that ED's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.3%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full analysis from the report here: ED
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.