Utility company Consolidated Edison, Inc. (ED) on Thursday reported a 65 percent decline in profit for the fourth quarter from last year, reflecting slightly lower revenues and higher expenses.
However, both revenue and earnings per share from ongoing operations for the quarter beat analysts' expectations. Looking ahead, the company forecast fiscal 2015 earnings in line with Street estimates.
The company's fourth-quarter net income for common stock was $81 million or $0.28 per share, down from $234 million or $0.79 per share in the prior-year period.
Excluding the effects of the LILO transactions and the net mark-to-market effects of the competitive energy businesses or CEBs, earnings from ongoing operations for the latest quarter were $171 million or $0.58 per share, compared to $202 million or $0.69 per share in the year-ago period.
On average, 11 analysts polled by Thomson Reuters expected the company to report earnings of $0.55 per share for the quarter. Analysts' estimates typically exclude special items.
Revenue for the quarter declined 1 percent to $2.83 billion from $2.87 billion in the same period last year. Analysts had a consensus revenue estimate of $2.52 billion for the quarter.
Operating expenses for the quarter rose 8 percent from the prior-year period to $2.58 billion.
Consolidated Edison noted that the latest quarter's results reflect primarily changes in the rate plans of the company's utility subsidiaries and the weather impact on its steam delivery service.
The rate plans provide for revenues to cover expected increases in certain operations and maintenance expenses as well as depreciation, reflecting primarily the impact of higher utility plant balances. The results of operations also include the gain on sale of solar electric production projects, the impact of the LILO transactions and the net mark-to-market effects of the CEBs.
For fiscal 2014, Con Edison's net income for common stock rose to $1.09 billion or $3.71 per share from $1.06 billion or $3.61 per share in the prior year. Earnings from ongoing operations for the year were $1.14 billion or $3.89 per share, compared to $1.11 billion or $3.80 per share in the previous year.
Total operating revenues for the year rose 5 percent to $12.92 billion from $12.35 billion last year.
Street expected the company to earn $3.85 per share for the year on revenues of $12.69 billion.
Looking ahead to fiscal 2015, Con Edison forecasts earnings from ongoing operations in a range of $3.80 to $4.00 per share. The outlook excludes the net mark-to-market effects of the CEBs. Analysts expect the company to report earnings of $3.93 per share for the year.
In a separate statement, Consolidated Edison said that a project conducted by the company and three research partners could make charging big fleets of electric vehicles more energy efficient and less expensive.
Con Edison said its engineers worked with experts from FedEx Express, General Electric and Columbia University's Engineering School to show how smart grid technology in charging stations can track and manage the power flow to electric vehicles.
The technology uses Supervisory Control and Data Acquisition smart grid technology to increase or reduce the power flow in a way that saves energy and reduces the vehicle owners' energy bill.
Large utility customers pay "demand charges," which are charges based on the largest amount of power the customer used at any one time during the month. Con Edison noted that by controlling energy usage, a company can cut its peak usage and reduce its demand charges. That can mean considerable savings for a company with a large fleet.
ED closed Thursday's regular trading at $64.80, down $0.61 or 0.93 percent on a volume of 2.53 million shares. However, in after-hours trading, the stock gained $0.10 or 0.15 percent to $64.90.
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