Pepco Holdings Earnings: Beats the Street on Profit Rise

S&P 500 (NYSE:SPY) component Pepco Holdings Inc. (NYSE:POM) reported net income above Wall Street’s expectations for the first quarter. Pepco Holdings is an energy company that delivers electricity and natural gas and generates and supplies energy.

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Pepco Holdings Earnings Cheat Sheet for the First Quarter

Results: Net income for Pepco Holdings Inc. rose to $68 million (30 cents per share) vs. $64 million (28 cents per share) in the same quarter a year earlier. This marks a rise of 6.3% from the year-earlier quarter.

Revenue: Fell 20.9% to $1.29 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Pepco Holdings Inc. beat the mean analyst estimate of 25 cents per share. It fell short of the average revenue estimate of $1.87 billion.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 18.7% to $1.23 billion in the fourth quarter of the last fiscal year. The figure fell 20.5% in the third quarter of the last fiscal year from the year earlier and dropped 13.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company trumped estimates last quarter after falling shy in the two quarters prior. In the fourth quarter of the last fiscal year, it missed the mark by 3 cents, and in the third quarter of the last fiscal year, it came in under estimates by 6 cents.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 44 cents per share to 40 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $1.28 a share to $1.25 over the last ninety days.

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

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