Northeast Utilities Systems Earnings: Four Straight Quarters of Profit Drops

S&P 500 (NYSE:SPY) component Northeast Utilities Systems (NYSE:NU) reported its results for the first 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 First Quarter

Results: Net income for Northeast Utilities Systems fell to $99.3 million (56 cents per share) vs. $114.2 million (64 cents per share) a year earlier. This is a decline of 13% from the year-earlier quarter.

Revenue: Fell 11% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Northeast Utilities Systems fell short of the mean analyst estimate of 69 cents per share. It fell short of the average revenue estimate of $1.41 billion.

Quoting Management: “I am extremely pleased that the merger has been completed, and we look forward to realizing the many benefits from this great business combination. With our resources now combined, our operating companies will be better positioned to implement the best practices of the two companies to achieve top-tier levels of customer service and reliability, while also reducing costs,” May said. Transmission results

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 11.3% to $1.07 billion in the fourth quarter of the last fiscal year. The figure fell 10.3% in the third quarter of the last fiscal year from the year earlier and dropped 5.8% in the second quarter of the last fiscal year from the year-ago quarter.

The company’s net income has now fallen for three straight quarters. In the fourth quarter of the last fiscal year, net income fell 12.4% from the year earlier, while the figure fell 10.5% in the third quarter of the last fiscal year.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 74 cents versus a mean estimate of net income of 69 cents per share.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 44 cents a share to 47 cents over the last ninety days. At $2.43 per share, the average estimate for the fiscal year has fallen from $2.45 ninety days ago.

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

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