Westar Energy Inc.
) announced fourth quarter pro forma earnings of 36 cents per
share, up 125% from year-ago earnings of 16 cents. The company's
earnings significantly topped the Zacks Consensus Estimate by
80%. An increase in returns from the retail business led to the
Pro forma and GAAP earnings were the same due to the absence
of one-time items.
For 2012, Westar Energy reported adjusted earnings of $2.15
per share compared with adjusted earnings $1.81 in 2011. Yearly
earnings outpaced the Zacks Consensus Estimate by 8.6%.
Earnings in 2012 outperformed due to the rise in retail
revenues, lower depreciation expense and benefits accrued from
corporate-owned life insurance partially offset by higher
2012 GAAP and adjusted earnings were similar owing to the
absence of one-time items.
Total revenue for the fourth quarter was $523.8 million, up
7.7% from $486.2 million in the year-ago quarter. The top line
upswing resulted from increase in residential, commercial as well
as industrial revenues aided by a surge in transmission
The top line for the quarter beat the Zacks Consensus Estimate
In 2012, revenue was $2,261.5 million versus $2,171.0 million
in 2011. 2012 revenue surpassed the Zacks Consensus Estimate by
Total operating costs for the quarter were $416.0 million
compared with $413.6 million in the year-ago quarter due to a
17.5% and 4.2% increase in selling and administrative expenses as
well as operating and maintenance expenses respectively,
partially offset by a 4.8% fall in fuel and purchased power.
Income from operations for the quarter rose 48.5% to $107.8
million from $72.6 million in the prior-year period. The immense
jump in revenue relative to the nominal cost escalation of 0.6%
led to the expansion of profit.
Total operating costs for 2012 also climbed to $1,699.3
million from $1,658.6 million in 2011.
Interest expense for the fourth quarter was $44.5 million
versus $41.8 million in the year-ago quarter.
Westar Energy expects earnings in 2013 in the range of $2.00
to $2.15 per share.
The company's Board of Directors hiked its quarterly dividend
by 3% to 34 cents payable Apr 1, 2013 to shareholders of record
as of Mar 11, 2013. The annual dividend also comes to $1.36 per
Other Utility Company Releases
The AES Corporation
) reported fourth quarter 2012 adjusted earnings per share of 32
cents, edging out the Zacks Consensus Estimate of 30 cents.
) reported adjusted earnings of $1.79 per share for the fourth
quarter of 2012, beating the Zacks Consensus Estimate of $1.06.
CMS Energy Corporation
) clocked earnings for the fourth quarter 2012 of 25 cents per
share on both an adjusted and GAAP basis, beating the Zacks
Consensus Estimate of 24 cents.
Westar Energy posted strong financial results in the fourth
quarter 2012 with both the top and the bottom line outpacing our
expectations. We anticipate the company's several pro-environment
programs like Jeffery and La Cygne will immensely contribute to
In renewables, the company stands to gain from the Prairie
Wind joint venture. Furthermore, the Lawrence Energy Center
project will fetch lucrative returns for Westar in the upcoming
However, pending rate case approval related to the
transmission rider could be an overhang on Westar's operations.
Presently, the company carries a Zacks Rank #3 (Hold).
Headquartered in Topeka, KS, Westar Energy is an electric
utility engaged in the generation, transmission, and distribution
of electricity in Kansas.
AES CORP (AES): Free Stock Analysis Report
CMS ENERGY (CMS): Free Stock Analysis Report
EDISON INTL (EIX): Free Stock Analysis Report
WESTAR ENERGY (WR): Free Stock Analysis
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