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Earnings Preview: Pepco Holdings - Analyst Blog
8/6/2012 3:15:00 PM
Utility service provider
Pepco Holdings Inc.
) is slated to release its second-quarter 2012 earnings results
before the market open on August 7, 2012.
Total revenue at the end of the first quarter was $1.29 billion, down 20.9% from $1.63 billion in the year-ago period. The year-over-year decline was due to lower contributions from all the three operating segments of the company.
Total operating expenses at the end of the first quarter of 2012 were $1.15 billion versus $1.48 billion in the year-ago period. The decline stemmed from lower fuel and purchase energy costs. Operation and maintenance expenses also dipped marginally from the prior-year quarter.
The full year 2012 Zacks Consensus Estimate is $1.23, down 1.78%
from $1.25 reported in the previous year. The current Zacks
Consensus Estimate ranges between $1.18 per share and $1.25 per
The past 30 days have seen one of six estimates declining for the second quarter, while none moved in the opposite direction. There were no changes in the quarterly estimates in the last 7 days.
For full year 2012, of the 9 available estimates, there has been 1 revision each, in the positive and negative direction, in the last 30 days. There were no changes in the estimates in the prior 7 days.
With respect to earnings surprise, the company's performance was mixed in the last four quarters. The results of the company surpassed our expectation in two of the last four quarters, while earnings fell short of expectation in the other two quarters.
The earnings surprise in the last four quarters ranged from
(16.67%) to 35.48%. The average surprise over the last four
quarters remained a positive 6.05%.
Like other regulated utility operators, this company too suffers from fluctuating weather conditions in its service territories. We believe the adherence to existing and new regulatory developments in its service territories will increase the operating costs of the company and impact margins.
Evaluating the pros and cons, we have decided to retain our Neutral recommendation of the company. Pepco Holdings Inc. competes with CMS Energy Corp. ( CMS ), Calpine Corp. ( CPN ) and NiSource Inc. ( NI ). The company has a Zacks #3 Rank implying a short-term Hold rating on the stock.
Based in Washington, District of Columbia (DC), Pepco Holdings Inc. engages in both regulated utility and unregulated businesses. Pepco Holdings Inc., also referred to as PHI, is one of the largest energy delivery companies in the Mid-Atlantic region, delivering power to customers in Delaware, the District of Columbia, Maryland and New Jersey. It also supplies natural gas to customers in Delaware.
CMS ENERGY (CMS): Free Stock Analysis Report
CALPINE CORP (CPN): Free Stock Analysis Report
NISOURCE INC (NI): Free Stock Analysis Report
PEPCO HLDGS (POM): Free Stock Analysis Report
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