On Monday, BofA Securities updated its outlook on Consolidated Edison (NYSE: NYSE:ED), a New York-based utility company, by increasing the price target to $109.00 from the previous $97.00 while keeping a Buy rating on the stock.
The adjustment follows the company's second-quarter earnings report for 2024, where Consolidated Edison posted an adjusted earnings per share (EPS) of $0.59. The figure slightly missed the BofA estimate of $0.61 but was a notch above the consensus of $0.57, noted an analyst from BofA.
The reported EPS represents a slight decrease from the $0.61 reported in the same quarter of the previous year.
The dip in year-over-year earnings per share is primarily attributed to a $0.11 headwind resulting from the New York State Public Service Commission's (NYSPSC) decision in April 2023.
The commission denied the request by Consolidated Edison Company of New York (CECONY) to capitalize costs for a new customer billing and information system. Despite this setback, Consolidated Edison has maintained its full-year 2024 EPS guidance, projecting earnings between $5.20 and $5.40.
BofA Securities continues to forecast an EPS of $5.34 for Consolidated Edison for the full year 2024. Looking ahead, the firm has also updated its future earnings estimates for the company. The forecast for the fiscal year 2025 has been set at $5.63, down from the previous $5.66. For the fiscal year 2026, the estimate has been adjusted to $5.92 from an earlier projection of $6.02.
Consolidated Edison reported a notable increase in operating revenue to $3.22 billion, driven largely by higher demand for cooling during a heat wave. Despite the increased revenue, the company also experienced a rise in operations and maintenance expenses, which were 13.9% higher than in the same period last year. In terms of future projections, Con Edison has maintained its full-year earnings forecast, expecting a per-share profit of between $5.20 and $5.40.
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