Consolidated Edison, Inc. (ED), headquartered in New York City, is an energy company providing electric, gas, and steam services to New York's customers, with a market cap of $36.9 billion. The company is scheduled to release its Q3 earnings on Thursday, Nov. 7.

Ahead of the event, analysts expect ED to report a profit of $1.58 per share, down 2.5% from $1.62 in the year-ago quarter. The company has consistently beaten Wall Street's earnings estimates in the last four quarters. 

Its adjusted earnings of $0.59 per share for the last quarter surpassed the consensus estimate by 7.3%. Consolidated Edison's Q2 earnings beat was driven by higher energy demand from hotter weather, increasing revenue and profits.

For fiscal 2024, analysts expect ED to report an EPS of $5.30, up 4.5% from $5.07 in fiscal 2023.  

ED stock is up 16.8% on a YTD basis, significantly underperforming the broader S&P 500 Index's ($SPX) 22.7% gains and the Vanguard Utilities Index Fund ETF Shares’ (VPU) 28.1% gain over the same time frame.

Shares of Consolidated Edison gained more than 2% on Aug. 1 following its mixed Q2 earnings results. Revenue climbed 9.4% year over year to $3.22 billion, outpacing forecasts of $3.08 billion, thanks to strong performance in gas, steam, and electric segments.

On the balance sheet, cash and temporary investments grew to $1.50 billion by June 30, 2024, up from $1.19 billion at the end of 2023, while operating cash flow surged to $1.91 billion. However, its long-term debt also edged higher to $23.3 billion. 

Solid revenue growth and improved liquidity offer optimism, but rising debt leaves Wall Street weighing their next move carefully. The performance underscores Consolidated Edison’s steady progress, yet some uncertainties linger. Therefore, market sentiment remains cautious, with analysts keeping a “Hold” rating on the stock. Of 18 analysts covering the stock, three advise a “Strong Buy” rating, 10 indicate a “Hold,” and five suggest a “Strong Sell.” 

Although ED currently trades at a premium to the average analyst price target of $101.88, the Street-high target price of $116 suggests the stock could rally as much as 9.2%.

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On the date of publication, Rashmi Kumari 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.