Consolidated Edison Q1 Profit Rises, Tops Estimates; Lifts FY15 Adj. EPS View

(RTTNews) - Consolidated Edison Inc. (ED) reported first quarter net income for common stock of $370 million or $1.26 a share up from $361 million or $1.23 a share in 2014.

Adjusted earnings, which exclude the effects of its lease in/lease out or LILO transactions and the net mark-to-market effects of the competitive energy businesses or CEBs, were $365 million or $1.25 a share in 2015 compared with $343 million or $1.17 a share in 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $1.18 per share. Analysts' estimates typically exclude special items.

The results of operations for the three months ended March 31, 2015, as compared to the 2014 period, reflect primarily changes in the rate plans of Con Edison's utility subsidiaries, including growth in its gas delivery service related to oil-to-gas conversions, and lower operations and maintenance expenses. The rate plans provide for revenues to cover expected increases in certain operations and maintenance expenses and depreciation reflecting primarily the impact of higher utility plant balances. The results of operations also include the impact of the LILO transactions in 2014 and the net mark-to-market effects of the CEBs.

Operations and maintenance expenses for CECONY were lower in the 2015 period reflecting lower electric operating costs and lower costs for support and protection of company underground facilities to accommodate municipal projects, offset in part by higher gas operating costs attributable to emergency response.

For the year 2015, the company expects its adjusted earnings to be in the range of $3.90 to $4.05 per share. Analysts expect annual earnings of $3.91 per share. The company's previous forecast of adjusted earnings was in the range of $3.80 to $4.00 per share. The higher range reflected primarily stronger than forecasted financial performance at CECONY due to the impact of the colder than normal winter on steam delivery revenues. Adjusted earnings per share exclude the net mark-to-market effects of the CEBs.