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Consolidated Edison, Inc. (NYSE:ED) Just Released Its Third-Quarter Earnings: Here's What Analysts Think
Consolidated Edison, Inc. (NYSE:ED) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was a workmanlike result, with revenues of US$4.9b coming in 3.2% ahead of expectations, and statutory earnings per share of US$2.07, in line with analyst appraisals. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, Consolidated Edison's 14 analysts are now forecasting revenues of US$18.7b in 2027. This would be an okay 3.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.9% to US$6.49. Before this earnings report, the analysts had been forecasting revenues of US$18.7b and earnings per share (EPS) of US$6.48 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Consolidated Edison
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$110. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Consolidated Edison at US$134 per share, while the most bearish prices it at US$87.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We would highlight that Consolidated Edison's revenue growth is expected to slow, with the forecast 2.6% annualised growth rate until the end of 2027 being well below the historical 4.6% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Consolidated Edison.
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. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Consolidated Edison going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 2 warning signs for Consolidated Edison (1 is significant!) that you need to take into consideration.
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