Zacks Investment Research downgraded
UIL Holdings Corporation
) to a Zacks Rank #5 (Strong Sell) on Mar 22, 2013.
BROOKFIELD INFR (BIP): Free Stock Analysis
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HUANENG POWER (HNP): Free Stock Analysis
UIL HOLDINGS CP (UIL): Free Stock Analysis
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Why the Downgrade?
UIL Holdings financial results for the fourth quarter and year
2012 were reported on Feb 21, 2013. Earnings per share in the
fourth quarter came in at 56 cents, up compared with 42 cents
reported in the year-ago quarter. However, the results fell 9.7%
short of the Zacks Consensus Estimate of 62 cents.
Talking of top-line, operating revenue of UIL Holdings in 2012
plummeted 5.3% year over year to $1,486.5 million. Despite the
revenue fall, a decline in operating expenses supported a 5.1%
increase in operating income.
For 2013, management expects higher pension expenses as well as a
decline in CTA earnings to negatively impact earnings per share
for the year. Taking this into account, the Zacks Consensus
Estimate for UIL Holdings has declined 5.6% to $2.18 for 2013 in
the last 60 days while that for 2014 has plummeted 2.1% to $2.38
Also, negative earnings surprise in three out of four trailing
quarters with an average of -11.8%, has raised concerns over the
future performances of the company. Currently, we have an
Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of -6.9% for the first quarter of 2013 and -1.3% for
Other Stocks to Consider
Other stocks to watch out for in the industry are
Brookfield Infrastructure Partners L.P.
Huaneng Power International, Inc.
), each with a Zacks Rank #1 (Strong Buy).