NorthWestern Lowers EPS Outlook After Unfavorable Ruling; Shares Off 1% in Late Trading


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Energy company NorthWestern ( NWE ) updated its guidance for FY12, and now expects EPS of $2.30 - $2.40, down from $2.35 - $2.50. Analysts polled by Capital IQ are expecting FY12 EPS of $2.43. Shares are down 1.34% to $36.91 in the after-hours session.

The company's reduced guidance follows an unfavorable non-binding Initial decision in the Dave Gates Generating Station (DGGS) Federal Energy Regulatory Commission (FERC) rate proceeding. DGGS is used to provide regulation service to NorthWestern's retail and wholesale customers in Montana.

NWE said that due to the decision, it expects too defer additional revenue and record a pre-tax charge of $12 million during Q3, pending a binding decision by FERC. Of this charge, $7 million relates to revenues collected during 2011, and about $5 million relates to 2012 revenues collected through Q3 of 2012. If adopted by FERC, the Initial Decision would cause an annual decrease of $7 million in revenues, or $0.12 per share share.

The company added that it will appeal the initial decision to the full FERC, which is expected to issue a final order in the proceeding sometime in the next 6 to 9 months. Shares are moving in a 52-week range of $30.44 - $37.96.

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This article appears in: Investing , Commodities

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