Skip to content
AnalystLens

Consolidated Edison 8-K Report, Financial Results (May 2, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 2, 2024
Period End
May 2, 2024
Security
ED
In the record · 2016–202610-K1110-Q338-K143

ED filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 143 current reports (8-K) between 2016 and 2026.

  1. Leadership change8-K · Jan ’18Jan ’18
  2. Material agreement8-K · Apr ’20Apr ’20
  3. Material agreement8-K · Jun ’22Jun ’22
  4. Leadership change8-K · Jul ’26Jul ’26

01—Abstract

Summary

Summary of the 8-K filed May 2, 2024. Cited figures are marked; the original filing is the authoritative source.

Consolidated Edison (NYSE: ED) reported first-quarter 2024 GAAP net income for common stock of $720 milliona, or $2.08 per share, down from $1,433 million ($4.06 per share) in the prior-year quarter.

The decline is driven almost entirely by the prior-year gain on the March 2023 sale of its Clean Energy Businesses. On a non-GAAP adjusted basis, which excludes the Clean Energy sale impacts, HLBV tax equity accounting, and mark-to-market effects, earnings rose to $742 millionb, or $2.15 per share, versus $1.83 per share in 1Q 2023, a $0.32 increase. The utilities drove the improvement: CECONY contributed $0.30 per share, largely from a new steam rate plan effective November 2023 ($0.13), higher gas and electric rate base, and an accretive share repurchase effect, while O&R added $0.02.

Management reaffirmed its 2024 adjusted EPS guidance of $5.20 to $5.40c. The company cited a projected 6.4% average annual rate base growth through 2028 and a transition to a pure-play regulated utility model after nearly completing non-core asset sales. Key regulatory developments include the NYSPSC's approval of the $1.2 billion Reliable Clean City Idlewild substation project in Queens, the approval of thermal energy network pilot funding, and O&R's updated electric and gas rate filings for January 2025 effective dates.

The company also declared an 83-cent quarterly dividend and noted its 50th consecutive year of dividend increases. Investors should note that GAAP results remain distorted by prior-year divestiture accounting, so adjusted EPS is the better comparison for ongoing performance. Risks to monitor include the outcome of O&R's pending rate cases, the NYSPSC's response to CECONY's capitalization of customer billing system costs above the $421 milliond limit ($88 million excess at March 31, 2024), pending NYSPSC action on the gas long-term plan, and the company's planned financing of up to $3.25 billion in long-term debt during 2024 with no common equity issuance beyond dividend reinvestment and employee plans.

02—Key points

Key Highlights

  1. GAAP EPS of $2.08 fell from $4.06 in 1Q 2023, primarily because the prior-year period included a large gain on the March 2023 sale of the Clean Energy Businesses.
  2. Adjusted (non-GAAP) EPS rose 17.5% to $2.15 from $1.83, with CECONY contributing $0.30 of year-over-year growth.
  3. CECONY's new steam rate plan (effective November 2023) added $0.13 per share, with higher gas and electric rate base adding a further $0.12.
  4. 2024 adjusted EPS guidance of $5.20 to $5.40 was reaffirmed, with the excluded HLBV effect estimated at roughly $(0.01) per share.
  5. Projected 6.4% average annual rate base growth through 2028 supports the regulated utility growth outlook.
  6. The NYSPSC approved the $1.2 billion Reliable Clean City Idlewild project, and an 83-cent quarterly dividend was declared, extending 50 consecutive years of dividend increases.
  7. The 2024-2028 financing plan calls for up to $3.25 billion of long-term debt in 2024 and no planned common equity issuance beyond dividend reinvestment and employee plans in 2024.

03—Questions

Frequently Asked Questions

  1. Why did reported EPS drop so sharply year over year?

    The 1Q 2023 results included a large gain from the sale of the Clean Energy Businesses, which closed March 1, 2023. That gain contributed about $2.24 per share net of tax, so comparing GAAP EPS of $2.08 with $4.06 overstates the decline in underlying performance. Adjusted EPS of $2.15 versus $1.83 better reflects operating trends.

  2. What is driving the growth in utility earnings?

    CECONY's new steam rate plan effective November 2023 contributed $0.13 per share, while higher gas rate base added $0.08, higher electric rate base added $0.04, and an accretive effect from share repurchases added $0.04. O&R contributed $0.02 from its electric base rate increase.

  3. Is Con Edison on track to meet its 2024 earnings guidance?

    Management reaffirmed the 2024 adjusted EPS range of $5.20 to $5.40 on May 2, 2024. Adjusted EPS excludes HLBV tax equity effects (about $(0.01) per share) and adjustments tied to the Clean Energy Business sale, which cannot be determined until year-end.

  4. What regulatory and capital risks should investors watch?

    CECONY has incurred $509 million in customer billing system costs, $88 million above the $421 million limit in its rate plans, and the NYSPSC may disallow some or all of the excess. O&R's electric and gas rate cases, seeking effective January 1, 2025 rates, remain pending, and the NYSPSC has yet to act on the Final Gas System Long-Term Plan. Both could affect future earnings growth.

  5. What is the company's dividend and balance sheet outlook?

    An 83-cent quarterly dividend was declared on April 18, 2024, and the company has increased its dividend for 50 consecutive years, targeting a 55% to 65% payout of adjusted earnings. Consolidated capital structure at March 31, 2024 was 51% debt and 49% equity for the parent and other debt, with Con Edison rated Baa1 / A- / BBB+ and all outlooks stable.

04—Continue

← View all 8-K filings