Energy utility TECO Energy Inc. ( TE ) announced
fist-quarter 2013 operating earnings of 19 cents per share, 11.8%
higher than the Zacks Consensus Estimate of 17 cents. However,
earnings were 9.5% lower than the year-ago figure. CMS ENERGY (CMS): Free Stock Analysis ReportNORTHWESTERN CP (NWE): Free Stock Analysis
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Total revenue at TECO Energy at the end of the first quarter was
$661.1 million marginally ahead of the Zacks Consensus Estimate of
However, the total revenue was 5.1% lower than the year-ago
figure. The year-over-year decline was due to lower contribution
from Unregulated and Regulated Electric and Gas
Highlights of the Release
The company saw a 4.3% year-over-year decrease in total expenses
during the quarter, which was due to an 11.1% decline in fuel
prices, 48.2% decline in purchased power costs and an 8.1% fall in
mining related costs.
Operating income in the reported quarter was $104.1 million, down
9.3% from the year- ago quarter.
Interest expenses declined 11.5% year over year to $43 million.
The reductions in interest expense were primarily due to lower
long-term debt interest rates and a lower interest rate on customer
Net income from continuing operations in the reported quarter was
$41.2 million, down 7.6% from the year-ago quarter. Net income for
the first quarter was $41.5 million, which included an income of
$0.3 million related to the TECO Guatemala sale transaction.
The company continues to have a strong cash balance. Cash and cash
equivalents of the company as of Mar 31, 2013 were $212.9 million,
up from $200.5 million as of Dec 31, 2012.
Capital expenditure of the company in the reported quarter was
$103.1 million, down from $117.4 million spent in the first quarter
Long-term debt of the company as of Mar 31, 2013 was $2.97
billion, unaltered from the 2012 year end level.
TECO Energy maintained its 2013 earnings per share expectation in
a range of 90 cents to $1.00.
Peoples Gas expects to earn above the mid-point of its allowed
return on equity (ROE) range of 9.75% to 11.75%. The segment
expects to benefit from moderate customer growth and cost
Tampa Electric is expected to expand its customer base by 1.2% in
2013 but sales growth is expected to be lower than increase in
customer count. This is primarily due to lower average customer
Other Company Releases
CMS Energy Corp. ( CMS ) reported earnings
of 53 cents per share in the first quarter of 2013, surpassing the
Zacks Consensus Estimate of 46 cents by 15.22%
Northwestern Corporation ( NWE ) announced
first-quarter 2013 operating earnings of $1.01 per share, 8.6%
above the Zacks Consensus Estimate of 93 cents.
Public Service Enterprise Group Inc. or PSEG ( PEG ) reported first
quarter 2013 earnings of 85 cents per share, beating the Zacks
Consensus Estimate of 74 cents by 14.9%.
TECO Energy started 2013 on a positive note by surpassing our
expectation. In the reported quarter, Tampa Electric and People Gas
recorded a respective customer growth of 1.4% and 1.3% year over
year. Despite an increase in customer count, operating revenues
from both Tampa Electric and People Gas in the reported quarter
fell 4.6% and 9.8%, respectively. The decline was mainly due to
lower average customer usage.
The current economic trend in TECO Energy's service territories is
encouraging. If the company can maintain its customer growth trend,
it could have a positive impact on its top line in the upcoming
Based in Tampa, Fla., TECO Energy is involved in the generation,
purchase, transmission, distribution, and sale of electricity in
the state. TECO Energy currently has a Zacks Rank #3 (Hold).