Progress Energy Inc. Earnings Cheat Sheet: Keeping the Profitability Streak Alive

S&P 500 (NYSE:SPY) component Progress Energy Inc. (NYSE:PGN) reported its results for the third quarter. Progress Energy 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 Third Quarter

Results: Net income for the electric utilities company fell to $291 million (98 cents per share) vs. $361 million ($1.23 per share) a year earlier. This is a decline of 19.4% from the year earlier quarter.

Revenue: Fell 7.3% to $2.75 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: PGN reported adjusted net income of $1.16 per share. By that measure, the company fell short of mean estimate of $1.24 per share. It fell short of the average revenue estimate of $3.05 billion.

Quoting Management: “During the third quarter, we met the challenges of high heat and demand and quickly repaired the damage left by Hurricane Irene,” said Bill Johnson, chairman, president and CEO. “We are continuing to focus on the fundamentals of safely delivering reliable, affordable and environmentally sound power to our customers. Meanwhile, we are working diligently to complete our merger with Duke Energy to drive increased value for our customers and shareholders, while achieving our earnings objectives for this year.”

Key Stats:

The company has now seen net income fall in each of the last four quarters. In the second quarter, net income fell 2.2% while the figure fell 3.2% in the first quarter and 18.8% in the fourth quarter of the last fiscal year.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 8 cents, and in the first quarter, it was ahead by 2 cents.

Revenue has fallen for the past three quarters. In the second quarter, revenue declined 4.9% to $2.26 billion while the figure fell 14.5% in the first quarter from the year earlier.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 56 cents per share to 54 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved up from $3.12 a share to $3.13 over the last ninety days.

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).

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(Source: Xignite Financials)