Progress Energy Earnings Cheat Sheet: Misses Estimates Yet Sees Recovery Signs

S&P 500 (NYSE:SPY) component Progress Energy, Inc. (NYSE:PGN) reported its results for the first quarter. Progress Energy Inc., is an integrated electric utility that generates, transmits and distributes power in portions of North Carolina, South Carolina and Florida.

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Progress Energy Earnings Cheat Sheet for the First Quarter

Results: Net income for the electric utilities company fell to $184 million (63 cents/share) vs. $190 million (67 cents/share) a year earlier. A decline of 3.2% from the year earlier quarter.

Revenue: Fell 14.5% to $2.17 billion YoY.

Actual vs. Wall St. Expectations: PGN fell short of the mean analyst estimate of 67 cents/share. Estimates ranged from 40 cents per share to 74 cents per share.

Quoting Management: “We are on track in meeting our financial goals and our shareholder expectations, even as weather returned to a more normal range from the extreme cold of early 2010,” said Bill Johnson, Progress Energy chairman, president and CEO. “We continue to see modest growth and signs of recovery in the Carolinas and Florida. Meanwhile, we remain focused on operational excellence, cost discipline and managing the business effectively as we move ahead with approvals and integration planning associated with our pending merger with Duke Energy.”

Key Stats: A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 4.9%.

The company has now seen net income fall in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 18.8% from the year earlier quarter.

Competitors to Watch: Duke Energy Corporation (NYSE:DUK), The Southern Company (NYSE:SO), TECO Energy, Inc. (NYSE:TE), SCANA Corporation (NYSE:SCG), Dominion Resources, Inc. (NYSE:D), American Electric Power Co., Inc. (NYSE:AEP), Northeast Utilities System (NYSE:NU), Entergy Corporation (NYSE:ETR), NextEra Energy, Inc. (NYSE:NEE), and FirstEnergy Corp. (NYSE:FE)

Stock Performance: Shares of PGN are trading at $47.56 as of May 5, 2011 at 8:05 AM ET, unchanged from the previous close.


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