Here's What Analysts Are Forecasting For Consolidated Edison, Inc. (NYSE:ED) After Its Full-Year Results

Consolidated Edison, Inc. (NYSE:ED) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues came in 2.6% below expectations, at US$15b. Statutory earnings per share were relatively better off, with a per-share profit of US$7.25 being roughly in line with analyst estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Consolidated Edison after the latest results.

View our latest analysis for Consolidated Edison

Following the latest results, Consolidated Edison's twelve analysts are now forecasting revenues of US$15.7b in 2024. This would be a credible 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 27% to US$5.32 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$15.5b and earnings per share (EPS) of US$5.35 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$90.89. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Consolidated Edison, with the most bullish analyst valuing it at US$103 and the most bearish at US$75.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Consolidated Edison's rate of growth is expected to accelerate meaningfully, with the forecast 7.0% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Consolidated Edison is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$90.89, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Consolidated Edison going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 warning signs for Consolidated Edison (2 can't be ignored!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.