It's been a good week for Consolidated Edison, Inc. (NYSE:ED) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.0% to US$90.07. It looks like the results were a bit of a negative overall. While revenues of US$3.9b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.2% to hit US$1.53 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Consolidated Edison
Following the latest results, Consolidated Edison's nine analysts are now forecasting revenues of US$15.6b in 2024. This would be a satisfactory 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 23% to US$5.32 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$15.4b and earnings per share (EPS) of US$5.29 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$88.27, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Consolidated Edison analyst has a price target of US$103 per share, while the most pessimistic values it at US$71.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Consolidated Edison's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 5.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Consolidated Edison is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Consolidated Edison's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$88.27, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Consolidated Edison going out to 2025, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 4 warning signs for Consolidated Edison (of which 2 are a bit unpleasant!) you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.