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ED NYSE· Consolidated Edison, Inc
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ED NYSE· Consolidated Edison, Inc
Earnings report Q4 2023

Con Edison Reports Strong Revenue Growth in 2023

Segments of revenue

In 2023, Con Edison reported operating revenues of $129 million, a significant decrease of $1.19 billion compared to the previous year. This decline can be attributed to various factors, including a decrease in purchased power revenues by $7 million and a significant decrease in gas purchased for resale by $241 million. Additionally, other operations and maintenance revenues decreased by $504 million. However, it is worth noting that these decreases were partially offset by an increase in gas revenues under the company's gas rate plan by $89 million and higher unbilled revenue accrual by $13 million.

Strengths

Despite the overall decrease in operating revenues, Con Edison demonstrated strong financial performance in 2023. The company reported a net income of $2.52 billion, or $7.25 per share, compared to $1.66 billion, or $4.68 per share, in the previous year. Adjusted earnings also increased to $1.76 billion, or $5.07 per share, compared to $1.62 billion, or $4.57 per share, in 2022. This growth in net income and adjusted earnings reflects the company's ability to effectively manage its operations and generate profits.

Challenges

One of the main challenges faced by Con Edison in 2023 was the decrease in operating revenues. The decline in purchased power revenues, gas purchased for resale, and other operations and maintenance revenues impacted the company's overall financial performance. Additionally, the decrease in net interest expense due to lower unrealized gains on interest rate swaps also contributed to the challenges faced by the company.

Noteworthy

In 2023, Con Edison made significant investments of $4.38 billion to upgrade and reinforce their energy delivery systems, with an additional expected investment of $4.82 billion in 2024. The company also completed the sale of all stock of the Clean Energy Businesses, which had an impact on the financial statements. Furthermore, Con Edison received contract revenue for a battery storage project in California following the sale of the Clean Energy Businesses.

Summary

Despite the challenges faced by Con Edison in terms of decreased operating revenues and lower net interest expense, the company demonstrated strong financial performance in 2023. The increase in net income and adjusted earnings reflects the company's ability to effectively manage its operations. The significant investments made by Con Edison in upgrading and reinforcing their energy delivery systems indicate a commitment to long-term growth and sustainability. However, the company should address the challenges related to the decrease in operating revenues and continue to explore opportunities for revenue growth in the future.

Source documents

Form 10-K  filed on Feb 15, 2024
102 pages scanned

Reference data

Company financials Q4 revenue 3.44B
Analyst estimates Q4 EPS beat by 2.75%
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