Integrys Energy Group Inc. Earnings: Net Income Dips Behind Revenue Decline

S&P 500 (NYSE:SPY) component Integrys Energy Group Inc. (NYSE:TEG) posted a decrease in profit as revenue declined. Integrys Energy Group is a holding company whose subsidiaries provide products and services in energy markets.

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Integrys Energy Group Earnings Cheat Sheet for the First Quarter

Results: Net income for Integrys Energy Group Inc. fell to $99.7 million ($1.22 per share) vs. $123.5 million ($1.56 per share) a year earlier. This is a decline of 19.3% from the year-earlier quarter.

Revenue: Fell 23.1% to $1.25 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Integrys Energy Group Inc. reported adjusted net income of $1.55 per share. By that measure, the company fell short of mean estimate of $1.57 per share. It fell short of the average revenue estimate of $1.72 billion.

Quoting Management: “Unseasonably warm winter weather impacted our earnings, but not as much as it might have without the decoupling mechanisms we have in place,” said Charles A. Schrock, Chairman, President and Chief Executive Officer of Integrys Energy Group. “I am pleased that we are able to maintain our guidance range, although we expect that we may be toward the lower end of the range.”

Key Stats:

Revenue has dropped for four quarters in a row. Revenue declined 12% to $1.13 billion in the fourth quarter of the last fiscal year. The figure fell 5.9% in the third quarter of the last fiscal year from the year earlier and dropped 0.4% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 46% from the year-earlier quarter.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of $1.01 versus a mean estimate of net income of 97 cents per share.

Looking Forward: Over the past sixty days, the outlook for the company’s performance next quarter has become increasingly unfavorable. The average estimate for the second quarter is 37 cents per share, a drop from 38 cents. The average estimate for the fiscal year is $3.46 per share, down from $3.50 ninety days ago.

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

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