AGL Resources Earnings: Swings to a Profit but Misses Forecast

S&P 500 (NYSE:SPY) component AGL Resources Inc. (NYSE:GAS) climbed to a profit in the third quarter, but still came up short of analyst expectations. Nicor is a holding company which serves 2.2 million customers in most of the northern third of Illinois.

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AGL Resources Inc. Earnings Cheat Sheet

Results: Reported a profit of $9 million (8 cents per diluted share) in the quarter. AGL Resources Inc. had a net loss of $3 million or a loss 4 cents per share in the year-earlier quarter.

Revenue: Rose more than twofold to $614 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: AGL Resources Inc. reported adjusted net income of 9 cents per share. By that measure, the company fell short of mean estimate of 22 cents per share. It fell short of the average revenue estimate of $886 million.

Quoting Management: “While market fundamentals including warmer than normal weather and increased pension expense have created a challenging operating environment for us this year, we have managed to effectively control costs across each of our business units and maintain a robust level of infrastructure investment at our regulated utilities. Our wholesale services segment has created nearly $60 million in economic value since this time last year and we expect to realize that value over the coming quarters,” said John W. Somerhalder II, chairman, president and chief executive officer of AGL Resources. “To date our integration efforts related to the Nicor transaction have been very successful, and we have delivered on efficiencies across the entire organization. We will continue to pursue initiatives that help to offset the fundamentals impacting many of our businesses.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 82.9% to $686 million in the second quarter. The figure rose 59.9% in the first quarter from the year earlier and climbed 18.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 30 cents versus a mean estimate of net income of 28 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 95 cents per share, down from $1.03 ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $2.65 per to share to $2.69.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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