Northeast Utilities Systems Earnings Cheat Sheet: Fourth Straight Quarter of Profit Growth

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Northeast Utilities Systems (NYSE:NU) from reporting a profit boost in the second quarter. Northeast Utilities is a public utility holding company that delivers energy through its subsidiaries.

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Northeast Utilities Systems Earnings Cheat Sheet for the Second Quarter

Results: Net income for Northeast Utilities Systems rose to $77.3 million (44 cents per share) vs. $71.9 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 7.4% from the year earlier quarter.

Revenue: Fell 5.8% to $1.05 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: NU fell short of the mean analyst estimate of 48 cents per share. It fell short of the average revenue estimate of $1.14 billion.

Quoting Management: Charles W. Shivery, NU’s chairman, president and chief executive officer, attributed NU’s higher operating results in the second quarter of 2011 primarily to the company’s continued focus on cost control measures and the impact of recent electric distribution rate case decisions, partially offset by a decline in results at NU parent and competitive businesses.”

Key Stats:

The company has now seen net income rise in four straight quarters. In the first quarter, net income rose 32.4% while the figure climbed 43.2% in the fourth quarter of the last fiscal year and 55.2% in the third quarter of the last fiscal year from the year earlier.

Revenue has fallen in the past four quarters. Revenue declined 7.8% to $1.24 billion in the first quarter. The figure fell 8.5% in the fourth quarter of the last fiscal year from the year earlier and dropped 4.8% in the third quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the first quarter, it topped the mark by 6 cents, and in the fourth quarter of the last fiscal year, it was ahead by 9 cents.

Competitors to Watch: NSTAR (NYSE:NST), UIL Holdings Corporation (NYSE:UIL), Unitil Corporation (NYSE:UTL), Consolidated Edison, Inc. (NYSE:ED), Maine & Maritimes Corp. (MAM), Central Vermont Public Service Corp (NYSE:CV), Pepco Holdings, Inc. (NYSE:POM), NextEra Energy, Inc. (NYSE:NEE), Alliant Energy Corporation (NYSE:LNT), and TECO Energy, Inc. (NYSE:TE).

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(Source: Xignite Financials)

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