Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Amended: Consolidated Edison Q4 Profit Misses Estimate, Boosts Dividend

RELATED NEWS
Trade ED now with 

Utility company Consolidated Edison Inc. (ED: Quote) on Thursday reported a 9 percent increase in profit for the fourth quarter, as a decline in revenues was more than offset by lower operating expenses as well as income tax expense. Adjusted earnings per share from ongoing operations declined and missed analysts' estimates.

Looking ahead, Con Edison expects to incur a charge in the first quarter to reflect the interest payment on disallowed federal income tax deductions. In addition, the company forecast earnings for fiscal 2013 in line with analysts' estimates and increased its dividend for the 39th consecutive year.

The New York-based company's fourth-quarter net income was $207 million or $0.70 per share, up from $190 million or $0.65 per share in the previous-year quarter.

Excluding the net mark-to-market effects of the competitive energy businesses or CEBs, earnings from ongoing operations for the quarter were $203 million or $0.69 per share, compared with $219 million or $0.74 per share in the same period last year.

On average, twelve analysts polled by Thomson Reuters expected the company to report earnings of $0.73 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenues for the quarter edged down to $2.90 billion from $2.92 billion in the prior-year quarter. Analysts had a consensus revenue estimate of $3.35 billion.

For fiscal 2012, Con Edison's net income rose to $1.14 billion or $3.86 per share from $1.05 billion or $3.57 per share in the prior year. Adjusted earnings from ongoing operations were $1.10 billion or $3.75 per share, compared to $1.06 billion or $3.64 per share in the previous year.

Operating revenues for the year declined 5 percent to $12.19 billion from $12.89 billion last year.

Analysts expected the company to earn $3.77 per share for the year on revenues of $13.01 billion.

Con Edison declared a quarterly dividend of $0.615 per share on its common stock, payable March 15 to shareholders of record as of February 13. This represents an annualized increase of $0.04 over the previous annualized dividend of $2.42 per share.

In January 2013, the United States Court of Appeals for the Federal Circuit reversed an October 2009 trial court ruling and disallowed company-claimed tax deductions relating to a 1997 transaction in which Consolidated Edison Development, Inc. leased property from the owner and then immediately subleased it back to the owner.

As a result, Con Edison expects to record an estimated charge of between $150 million and $170 million after-tax in the first quarter of 2013 to reflect the interest payment on disallowed federal income tax deductions and the recalculation of the accounting effect of the 1997 transaction and its 1999 lease in/lease out transaction.

Looking ahead to fiscal 2013, Con Edison expects earnings from ongoing operations in a range of $3.65 to $3.85 per share. Analysts expect the company to earn $3.83 per share for the year.

The outlook excludes an estimated $0.50 to $0.60 per share charge relating to the disallowance of tax deductions associated with its lease in/lease out transactions and the net mark-to-market effects of the CEBs. The outlook also reflects capital investments of $2.425 billion, substantially all of which will be spent at the company's regulated utilities.

ED closed Thursday's trading at $56.88, up $0.10 or 0.18 percent on a volume of 1.42 million shares. In after-hours, the stock declined $0.18 or 0.32 percent to $56.70.

Register
To receive FREE breaking news email alerts for Consolidated Edison Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
A ban on athletes using stamina-boosting gases - xenon and argon - came into effect on Monday. The World Anti-Doping Agency (WADA) said Hypoxia-Inducible Factor (HIF) activators Xenon and Argon have been added to the 2014 List of Prohibited Substances and Methods List following the required three-month notice period and UNESCO's communication to all States Parties. A recommendation to revise the British manufacturing growth eased further in August to its lowest level in 14 months as output and demand increased at slower rates, survey results from Markit Economics showed Monday. The Markit/CIPS Purchasing Managers' Index dropped to 52.5 from a revised 54.8 in July. Economists had expected the score to fall to 55.1 from July's original figure of 55.4. Consumers spent less in July than in the previous month, a surprise retreat that complicates the prevailing belief that the U.S. economic situation is improving. Along with the unexpected drop in spending, government figures released on Friday showed that incomes rose at a slower pace in July than in the previous month. Meanwhile, data on prices indicated that inflation pressures remain tame.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.