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TECO Energy (TE) Earnings In Line with Estimates in Q4

Energy utility company TECO EnergyTE announced fourth-quarter 2015 operating earnings of 23 cents per share, on par with the Zacks Consensus Estimate. Earnings in the quarter were 21.1% higher than the prior year.

Teco Energy Inc. (TE) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Earnings in 2015 were $1.10 per share, in line with Zacks Consensus Estimate and 6.8% higher than 2014 levels. The year-over-year growth was primarily due to consistent customer growth and benefits stemming from New Mexico Gas integration.

Operating Revenue

Total operating revenues in the fourth quarter were $676.1 million, down 3% from $695.5 million in the year-ago period.

Total revenues of $2,743.5 million in 2015 were 4.5% short of the Zacks Consensus Estimate of $2,872 million but up 6.9% from the 2014 level.

Segment Results

Tampa Electric's net income for the fourth-quarter 2015 was $43 million, up 14.9% from $37.4 million in the fourth-quarter 2014. Average number of customers increased 1.8% year over year to 722,826.

Peoples Gas reported net income of $6.9 million for the quarter, compared with $8.9 million in the comparable period of 2014. Average number of customers grew 2% to 362,918 in the quarter.

New Mexico Gas Co.'s net income was $13.1 million in the fourth quarter of 2015 compared with $11.4 million a year ago.

Highlights of the Release

The company was able to expand its customer base at its three utilities resulting in year-over-year top-line growth.

Total expenses during the fourth quarter were $550.1 million, down 5.7% from the year-ago level of $583.4 million.

Interest expenses in the reported quarter were $48.7 million, decreasing 1.8% from $49.6 million in the year-ago quarter.

Financial Update

TECO Energy had $23.8 million of cash and cash equivalents as of Dec 31, 2015, compared with $25.4 million at the end of 2014.

Long-term debt as of Dec 31, 2015, was $3,516.9 million, up from $3,354 million as of Dec 31, 2014.

Net cash from operating activities in 2015 was $609.6 million compared with $664.8 million in the same period a year ago.

Guidance

TECO Energy expects earnings per share in 2016 to be driven by customer growth trends across all three of its utilities.

Other Peer Releases

Exelon Corporation EXC reported fourth-quarter 2015 adjusted operating earnings of 38 cents per share, short of the Zacks Consensus Estimate by 2.6%.

NextEra Energy NEE announced fourth-quarter 2015 adjusted earnings of $1.17 per share, beating the Zacks Consensus Estimate of $1.11 by 5.41.

American Electric Power Co., Inc. AEP reported fourth-quarter 2015 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate of 50 cents by 4%.

Our View

TECO Energy has been successful in driving electricity and natural gas customer growth.

The company's merger with Emera is on course. The deal has already received approval from the Federal Energy Regulatory Commission and is pending other regulatory and government approvals.

Yesterday, the board of directors of TECO Energy approved a 2.2% increase in the quarterly dividend rate to 23 cents per share.

TECO Energy currently has a Zacks Rank #4 (Sell).

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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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