TECO Energy Inc.
) announced second-quarter 2013 operating earnings of 25 cents
per share or net income of $53.4 million. TECO's earnings were a
penny or 3.8% lower than the Zacks Consensus Estimate of 26
cents. Earnings were also 16.7% below the year-ago figure.
Total revenue at TECO Energy at the end of the second quarter was
$735.9 million, nominally missing the Zacks Consensus Estimate of
Total revenue was 2.2% lower than the year-ago figure. The
year-over-year decline was primarily due to lower contribution
from its Unregulated segment, with contribution from Regulated
Electric and Gas segments partially offsetting the negative
Highlights of the Release
The company saw a 2.1% year-over-year increase in total expenses
during the quarter, which was due to a 3.9% rise in fuel prices,
an 11.8% increase in purchased power costs and a 13.1% increase
in other costs.
The year-over-year decline in total revenues and increase in
total expense impacted the operating margins of the company. The
second quarter operating margin contracted 358 basis points to
Interest expenses declined 10.8% year over year to $42.7 million.
The reductions in interest expense were primarily due to lower
long-term debt interest rates and a lower interest rate on
Cash and cash equivalents of the company as of Jun 30, 2013, were
$153.3 million, down from $200.5 million as of Dec 31, 2012.
Capital expenditure in the reported quarter was $146.6 million,
up from $123.5 million spent in the second quarter of 2012.
Long-term debt as of Jun 30, 2013, was $2.9 billion, marginally
lower than the 2012 year-end level of $2.97 billion.
TECO Energy maintained its 2013 earnings per share expectation in
the 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 customer
switching from other sources of fuel to natural gas.
Tampa Electric expects the year-to-date trend of customer growth
to continue but sales growth is expected to be lower than the
increase in customer count. This is primarily due to lower
average customer usage.
Other Company Releases
CMS Energy Corp.
) reported earnings of 29 cents per share in the second quarter
of 2013, lagging the Zacks Consensus Estimate of 34 cents by
) announced second-quarter 2013 operating earnings of 35 cents
per share, 16.7% above the Zacks Consensus Estimate of 30
) announced second-quarter 2013 operating earnings of 23 cents
per share, 4.2% lower than the Zacks Consensus Estimate of 24
CMS ENERGY (CMS): Free Stock Analysis Report
NISOURCE INC (NI): Free Stock Analysis Report
NORTHWESTERN CP (NWE): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
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TECO Energy maintained its customer growth trend for both
electricity and gas from the prior quarter. In the reported
quarter, Tampa Electric and People Gas recorded customer growth
of 1.4% each year over year. Despite an increase in customer
count, operating revenues from Tampa Electric fell by 7.7% year
over year while People Gas recorded an operating revenue increase
Though the decline in electricity revenue was primarily due to
lower usage by residential and commercial customers, we are not
entirely disappointed as the increase in customer count indicates
a gradual recovery in the Florida economy.
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 #4 (Sell).