Northeast Utilities Earnings: Here’s Why Shares are Down Now

Northeast Utilities (NYSE:NU) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.13%.

Northeast Utilities Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 20% to $0.54 in the quarter versus EPS of $0.45 in the year-earlier quarter.

Revenue: Rose 0.45% to $1.64 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northeast Utilities reported adjusted EPS income of $0.54 per share. By that measure, the company beat the mean analyst estimate of $0.5. It missed the average revenue estimate of $1.65 billion.

Quoting Management: Thomas J. May, NU president and chief executive officer, said that NU’s operating performance has been strong and that results for the first half of the year were consistent with NU’s expectations, illustrating the benefits of the merger. “We have been very pleased with the performance of our system and our service to our customers, particularly during an extremely warm and humid first half of the summer. We continue to have a great deal of work ahead of us, but we’ve made considerable progress over the 15 months since our merger closed,” May said. “Additionally, our financial results continue to improve as we integrate the best practices that our employees brought to this merger.”

Key Stats (on next page)…

Revenue decreased 18% from $2 billion in the previous quarter. EPS decreased 25% from $0.72 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.75 to a profit $0.74. For the current year, the average estimate has moved up from a profit of $2.53 to a profit of $2.56 over the last ninety days.

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