Con Edison Reports 2021 Earnings: A Bright Spark or Just Another Flicker?

Ticker: ED | Release Date: February 17, 2022

Earnings Overview

Consolidated Edison, Inc. (NYSE: ED) has unveiled its 2021 earnings, and let?s just say, the numbers have a certain electricity about them. The company reported a net income for common stock of $1.346 billion, translating to an EPS of $3.86, a noticeable climb from the previous year?s $1.101 billion or $3.29 per share. Adjusted earnings also saw a positive jolt, clocking in at $1.528 billion, or $4.39 per share, compared to $1.399 billion or $4.18 per share in 2020.

Breaking Down the Numbers

While the EPS consensus might have set a high bar, Con Edison managed to leap over it with both style and substance. The adjusted earnings figures exclude some pesky impairment losses related to investments in Stagecoach Gas Services LLC and Honeoye Storage Corporation. This precautionary measure keeps the focus on the core operations of the business?something investors always appreciate.

A Quarter to Remember

In the fourth quarter alone, Con Edison reported a net income of $224 million, or $0.63 per share, as opposed to just $43 million or $0.13 per share in the same quarter of 2020. An earnings surprise? You bet! The adjusted earnings for Q4 came in at $355 million, or $1.00 per share, again showing a robust increase from last year?s $253 million or $0.75. The revenue forecast for the upcoming year looks promising as well, especially with these performance metrics lighting the way.

Leadership?s Vision

Timothy P. Cawley, the chairman and CEO, expressed pride in the team?s resilience throughout the pandemic. ?Our expanded Clean Energy Commitment reflects our dedication to lead the transition to renewables,? he stated, hinting at a strategic pivot towards sustainability. This focus on clean energy not only aligns with current market trends but also positions Con Edison as a potential leader in the transition to greener alternatives?a move that could appeal to environmentally-conscious investors.

What Lies Ahead?

Looking towards 2022, Con Edison expects its adjusted EPS to fall between $4.40 and $4.60, excluding the impact of HLBV accounting for tax equity investments. This guidance suggests a cautious optimism within the company, as they navigate the complexities of renewable energy investments and their associated tax impacts. As the company ventures further into clean energy, it will be interesting to see how these initiatives translate into future earnings and whether they will uphold the recent upward trend.