Diversified utility Consolidated Edison, Inc. (ED), also known as Con Edison, is slated to release third-quarter results before the market opens Monday. On average, 11 analysts surveyed by Thomson Reuters expect the company to post earnings of $1.05 per share for the quarter, with estimates ranging between $0.94 and $1.09 per share. Analysts' estimates typically exclude special items. Revenues for the quarter are estimated to be $3.59 billion, representing a 6.9% fall from last year.
In the same quarter a year ago, New York-based Con Edison reported net earnings of $182 million or $0.66 per share, and earnings from ongoing operations of $269 million or $0.98 per share, both lower than the previous year.
While announcing the second-quarter results back in August, Kevin Burke, Chairman, President and Chief Executive Officer, had said, "Despite continued weakness in the economy, the company remains focused on safe, reliable and efficient energy-service delivery, on system upgrading and reinforcement, and the advancement of environmentally-responsible energy projects."
At that time, the company also confirmed its fiscal 2009 forecast of earnings per share from ongoing operations in the range of $3.00 to $3.20 a share, which excludes the net mark-to-market effects of the competitive energy businesses. Analysts currently expect the company to earn $3.10 per share for the full year 2009.
In its preceding second quarter, Con Edison reported a 73% decline in net income to $150 million or $0.55 per share from last year's $552 million or $2.02 per share, reflecting the absence of a hefty gain on the sale of Con Edison Development's generation projects and discontinued operations. Excluding items, income from ongoing operations grew to $131 million or $0.48 per share from $114 million or $0.42 per share in the prior year quarter.
Con Edison, with approximately $14 billion in annual revenues and $34 billion in assets, provides electric, gas, and steam utility services in the United States through its subsidiaries, Consolidated Edison Co. of New York and Orange & Rockland Utilities. It provides electric service to about 3.3 million customers and gas service to approximately 1.1 million customers in New York City and Westchester County, as well as provides steam service to office buildings, apartment houses, and hospitals in parts of Manhattan.
The utility sector in general has been hit hard by weak demand for power amid the severe economic crisis, even though they are highly regulated and have less competition as the territories are more or less insulated from peers, resulting in only one electricity provider in most towns. The slowdown in residential and commercial real estate growth has also impacted the utility companies' steady profits.
According to the Energy Information Administration, total U.S. electricity consumption fell 1.6% in the 2008 and is forecast to decline by 3.3% in 2009, and then grow by 1.3% in 2010 as the improving economy leads to slowly recovering industrial sector electricity sales.
Last week, Con Edison announced that it would receive $136 million from the recently announced $3.4 billion smart grid stimulus funds from the U.S. Department of Energy. The company said that the federal stimulus money would help it fund a smart grid program for customers served by its units Consolidated Edison Co. of New York and Orange & Rockland Utilities.
The Con Edison program is one of 100 projects that will share $3.4 billion in Smart Grid Investment Grant awards announced by President Barack Obama. Most of the fund is projected to go to utilities to install meters, transformers and other equipment that can control the flow of electricity and reduce power use and homeowner bills. Utility is one of areas that the Obama Administration wants to strengthen, with the creation of a smart grid, making use of smart meters and load-controllers. The federal aid is part of the $787 billion economic stimulus legislation approved by Congress in February.
According to the Energy Information Administration, the "Smart Grid" consists of devices connected to transmission and distribution lines that allow utilities and customers to receive digital information from and communicate with the grid. Such devices allow a utility to find out where an outage or other problem is on the line and sometimes even fix the problem by sending digital instructions.
While creating new pathways for energy, investments in the smart grid would also create thousands of new jobs and save consumers more than $20 billion in electricity bills over the next 30 years. According to the Electric Power Research Institute, the implementation of smart grid technologies could reduce electricity use by more than 4% by 2030.
According to Con Edison, the stimulus funds will broaden the scope of its existing smart grid efforts to modernize the electric grid in the most complex energy market in America. The company is already testing various technologies in a smart grid pilot project in Queens.
Among other utilities, American Electric Power Co., Inc. (AEP) on October 29 reported a 18.4% increase in profit for the third quarter to $443 million or $0.93 per share from prior year's $374 million or $0.93 per share, helped by rate increases and cost cutting, partially offset by weak industrial demand amid the economic downturn, mild weather as well as a quarterly revenue drop. The Columbus, Ohio-based company's revenues for the quarter dropped to $3.5 billion from $4.2 billion the same quarter last year.
Electricity and natural gas utility Public Service Enterprise Group Inc. (PEG) last Wednesday reported a 26% decline in net income for the third quarter to $488 million or $0.96 per share from last year's $656 million or $1.29 per share, impacted negatively by lower revenues and a year-ago divestiture gain. The Newark, New Jersey-based company's operating earnings, excluding items, declined to $464 million or $0.92 per share from $477 million or $0.94 per share a year ago. Operating revenues declined 18.2% year-over-year to $3.04 billion. The company said cooler than normal weather and continued weak economic conditions combined to reduce demand and lower pricing.
Akron, Ohio-based FirstEnergy Corp. (FE) last week reported a profit for the third quarter that more than halved from last year, reflecting weak revenues across all its business segments. The company's third-quarter net income available to FirstEnergy Corp. was $234 million or $0.77 per share, compared to $471 million or $1.54 per share in the prior-year quarter. Normalized non-GAAP earnings, excluding special items, were $1.11 per share, compared to $1.60 per share last year. Quarterly revenues declined to $3.41 billion from the previous year's revenue of $3.91 billion.
In an October 1 research note, Jefferies & Co upgraded its rating on Con Edison to 'Buy' from 'Hold'.
ED closed Friday's regular trading session at $40.68, down $0.64 or 1.55%, on a volume of 2.9 million shares. In the past 52 weeks, shares have been trading between $32.56 and $44.86, with a 3-month average volume of 1.8 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.