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TECO Energy Earnings Match Estimates, Revenues Up Y/Y

Energy utility company TECO EnergyTE announced third-quarter 2015 operating earnings of 33 cents per share, on par with the Zacks Consensus Estimate. Earnings in the quarter were a penny higher than the prior year.

Teco Energy Inc. - Earnings Surprise | FindTheBest

GAAP earnings in the reported quarter were 23 cents compared with 4 cents in the year-ago quarter. The difference between GAAP and operating earnings was due to acquisition related costs and losses from discontinued operations.

Operating Revenue

Total operating revenues in the third quarter were $693.8 million, up 1% from $687.2 million in the year-ago period. However, the top line lagged the Zacks Consensus Estimate by 8.5%.

Segment Results

Tampa Electric 's net income for the third-quarter 2015 was $82.1 million, up 3% from $79.7 million in the third-quarter 2014. Average number of customers increased 1.8% year over year to 720,075.

Peoples Gas reported net income of $6.2 million for the quarter, compared with $4.8 million in the comparable period in 2014. Average number of customers grew 2% to 361,045 in the quarter.

New Mexico Gas Co . incurred a loss of $2.8 million in the third quarter of 2015.

Highlights of the Release

During the third quarter, the company closed the sale of its coal mining subsidiary, TECO Coal LLC, to Cambrian Coal Corporation, a Booth Energy company.

The company was able to increase its customer base at its three utilities helping in top-line growth.

Total expenses were $547.2 million, up 1% from the year-ago level of $541.5 million.

Interest expenses in the reported quarter were $48.4 million, increasing 9% from $44.4 million in the year-ago quarter.

Financial Update

TECO Energy had $55.4 million of cash and cash equivalents as of Sep 30, 2015, compared with $25.4 million at the end of 2014.

Long-term debt as of Sep 30, 2015, was $3,517.7 million, up from $3,354 million as of Dec 31, 2014.

Net cash from operating activities for the first nine months of 2015 was $479.4 million compared with $506 million for the same period a year ago.

Guidance

TECO Energy reiterated its earnings per share guidance for 2015 in the range of $1.08 to $1.11. The forecast assumes normal weather through the rest of 2015.

The company expects its 2016 performance to be driven by customer growth trends at all three utilities at or above the trends seen in 2015.

Other Peer Releases

Exelon Corporation EXC reported third-quarter 2015 adjusted operating earnings of 83 cents per share, surpassing the Zacks Consensus Estimate by 17%.

CMS Energy Corporation CMS reported third-quarter 2015 adjusted earnings per share of 53 cents, surpassing the Zacks Consensus Estimate of 49 cents by 8.2%.

FirstEnergy Corp. FE reported third-quarter 2015 operating earnings of 97 cents per share, outpacing the Zacks Consensus Estimate of 86 cents by 12.8%.

Zacks Rank

TECO Energy currently has a Zacks Rank #3 (Hold).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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