Utility powerhouse Consolidated Edison (NYSE:ED) illuminated the financial landscape by surpassing third-quarter profit predictions, riding high on boosted earnings from its electricity segment. This New York City-centric company, entrusted with providing power to a significant part of the Big Apple, had previously sought an upturn in its rate case earlier this year—a process that formally decides what consumers fork out for utilities like electricity, natural gas, and steam services. The reported quarter sizzled with record temperatures across the nation, intensifying the demand for cooling solutions as folks sought refuge from the scorching heat.
Operating revenue from the company’s electric segment for the quarter culminating on September 30 surged to a bright $3.47 billion, up from $3.33 billion in the previous year. In a thrilling reveal, the company reported an adjusted profit of $1.62 per share, outshining analysts’ expectations of $1.60 per share, according to LSEG data.
In a move that sent sparks flying, Consolidated Edison upgraded its 2023 profit forecast, now projecting a range of $5.00 to $5.10 per share, leaping beyond its earlier outlook of $4.85 to $5.00 per share. Bolstered by robust electricity earnings, the company, based in the Empire State, adeptly balanced out increasing interest expenses that elevated costs related to maintenance and fresh projects.
Despite the radiant success in the electricity department, the company’s gas supplying unit saw a dimming performance, with operating revenue slipping to $353 million from the previous year’s $453 million. Nevertheless, Consolidated Edison’s power play in the electric sector shone brightly, showcasing a promising financial glow amid the industry’s changing landscape.