ITC Holdings Earnings: Here’s Why Investors are Ambivalent Now

ITC Holdings Corp. (NYSE:ITC) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

ITC Holdings Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 12.15% to $1.2 in the quarter versus EPS of $1.07 in the year-earlier quarter.

Revenue: Rose 16.44% to $229.82 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ITC Holdings Corp. reported adjusted EPS income of $1.2 per share. By that measure, the company missed the mean analyst estimate of $1.28. It missed the average revenue estimate of $247.03 million.

Quoting Management: “This quarter proved to be active on all fronts, both for our stand-alone business as well as for our transaction with Entergy,” said Joseph L. Welch, chairman, president and CEO of ITC. “Despite the impact of continuing inclement weather, we are making solid progress on our stand-alone plans for 2013 and remain poised to meet our overall objectives for the year. Additionally, we also have continued to progress the Entergy transaction through the various regulatory approval processes. We were pleased to receive FERC’s approval of the transaction last month and look forward to continuing to constructively work through the regulatory process at the state and local level in order to advance the transaction to a successful closing in 2013.”

Key Stats (on next page)…

Revenue increased 5.76% from $217.3 million in the previous quarter. EPS decreased 0% from $1.20 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.31 and has not changed. For the current year, the average estimate has moved down from a profit of $4.94 to a profit of $4.93 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)