Pepco Holdings Inc. Earnings Cheat Sheet: Beats Analysts’ Estimates

S&P 500 (NYSE:SPY) component Pepco Holdings Inc. (NYSE:POM) reported net income above Wall Street’s expectations for the third 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 Third Quarter

Results: Net income for Pepco Holdings Inc. rose to $80 million (35 cents per share) vs. $17 million (8 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Fell 20.5% to $1.64 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: POM reported adjusted net income of 52 cents per share. By that measure, the company beat the mean estimate of 41 cents per share. It fell short of the average revenue estimate of $2 billion.

Quoting Management: “Our earnings from continuing operations for the quarter reflect continued progress on executing our strategic plan, including our efforts to improve system reliability and customer service,” said Joseph M. Rigby, Chairman, President and Chief Executive Officer. “In late August, our efforts to improve reliability were tested with the arrival of Hurricane Irene.The high winds and driving rain caused about 445,000 customers to lose power at the height of the storm, or about 25 percent of our electric customers. We applied a maximum level of resources to restore power, and had the vast majority of our customers restored within two days.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 11 cents in the second quarter, by 7 cents in the first quarter, and by 14 cents in the fourth quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 13.9% to $1.41 billion in the second quarter. The figure fell 30.7% in the first quarter from the year earlier and dropped 28.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 16 cents per share, down from 22 cents ninety days ago. Over the past three months, the average estimate for the fiscal year has climbed from $1.20 per to share to $1.24.

Competitors to Watch: Public Service Enterprise Group Inc. (NYSE:PEG), NextEra Energy, Inc. (NYSE:NEE), FirstEnergy Corp. (NYSE:FE), Northeast Utilities System (NYSE:NU), Constellation Energy Group, Inc. (NYSE:CEG), DPL Inc. (NYSE:DPL), The Southern Company (NYSE:SO), Consolidated Edison, Inc. (NYSE:ED), Exelon Corporation (NYSE:EXC), and Duke Energy Corporation (NYSE:DUK).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)