NV Energy Meets EPS, Sales Trail - Analyst Blog
February 25 2013 - 4:20AM
Zacks
NV Energy Inc.’s
(NVE) fourth-quarter 2012 earnings per share were 7 cents, in line
with the Zacks Consensus Estimate and beating the year-ago loss of
11 cents per share.
2012 earnings were $1.35 per share,
up 95.6% from the year-ago earnings of 69 cents per share. 2012
earnings were also in line with the Zacks Estimate Consensus
Estimate.
The favorable earnings resulted
from positive rate changes and lower interest expense partially
offset by soft weather conditions.
Revenue
Total operating revenue for the
quarter was $600.6 million, down 1.5% from $609.6 million in the
prior-year quarter. Quarterly revenue fell below the Zacks
Consensus Estimate by 6.6%.
For 2012, the company clocked
revenue of $2,979.2 million compared with $2,943.3 million in 2011.
The top line for 2012 also lagged the Zacks Consensus Estimate by
5.8%.
Operational
Highlights
Total operating expenses for the
quarter declined 5.4% to $504.0 million from $532.9 million in the
year-ago period. This was due to a sharp 25.5% drop in gas
purchases and a 2.06% decline in energy efficiency program
costs.
For 2012, total operating cost and
expenses declined 5.9% to $2,194.1 million from $2,332.6 million in
the year-ago quarter. This stemmed from a 40.5% and 16.9% fall in
gas purchase and fuel costs, respectively.
Total operating income for the
fourth quarter stood at $96.5 million, up 25.8% from $76.7 million
in the year-ago quarter. The greater decline in operating cost
relative to the revenue fall led to the jump in profits.
Interest expense was $73.3 million
in the fourth quarter versus $89.9 million in the corresponding
year-ago period.
Dividend
Update
The board of directors approved a
12% hike in the quarterly dividend to 19 cents per share payable on
Mar 20, 2013 to shareholders of record on Mar 5, 2013.
Guidance
NV Energy expects earnings in 2013
in the range $1.25 to $1.35 per share. The company anticipates
dividend growth of 10% when it reaches a payout ratio of 60%–65%.
Other Utility Company
Releases
Calpine
Corporation (CPN) posted operating earnings of 22 cents
per share for the fourth quarter of 2012 as against the Zacks
Consensus Estimate as well as the year-ago figure of a loss of 3
cents. DTE Energy Company (DTE) reported
fourth-quarter operating earnings of 85 cents per share, in line
with the Zacks Consensus Estimate. ALLETE Inc.
(ALE) reported fourth-quarter earnings of 75 cents per share
compared with 53 cents per share in the year-ago quarter. ALLETE’s
earnings were in line with the Zacks Consensus Estimate.
Our View
NV Energy ended the year with mixed
results as the top line missed our expectation while the bottom
line equaled it. We believe expansion in the consumer footprint,
expectation of a rise in natural gas prices and cost control
efforts would shore up returns in the upcoming quarters. Moreover,
the company’s renewable asset basket is expected to contribute to
profitability, going forward.
However, weather variations and
unplanned outages are risks the company needs to watch out for.
Currently, NV Energy carries a Zacks Rank #3 (Hold).
Based in Las Vegas, Nev. NV Energy
and its subsidiaries engage in the generation, transmission,
distribution and sale of electric energy in Nev.
ALLETE INC (ALE): Free Stock Analysis Report
CALPINE CORP (CPN): Free Stock Analysis Report
DTE ENERGY CO (DTE): Free Stock Analysis Report
NV ENERGY INC (NVE): Free Stock Analysis Report
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