Progress Energy Inc. Earnings: Falls Short of Expectations

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

Results: Net income for the utility-electric power fell to $150 million (51 cents per share) vs. $184 million (62 cents per share) a year earlier. This is a decline of 18.5% from the year-earlier quarter.

Revenue: Fell 3.5% to $2.09 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Progress Energy Inc. reported adjusted net income of 48 cents per share. By that measure, the company fell short of mean estimate of 64 cents per share. It fell short of the average revenue estimate of $2.23 billion.

Quoting Management: “The extremely mild weather through the first quarter of 2012 – although certainly a welcome respite for our customers – resulted in significantly lower energy sales in the Carolinas,” said Chairman, President and CEO Bill Johnson. “We remain focused on meeting our financial goals and shareholder expectations for the year through operational excellence, cost management and consistent execution, as we await the last regulatory approvals of our pending merger with Duke Energy.”

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 25.2% to $1.74 billion in the fourth quarter of the last fiscal year. The figure fell 7.3% in the third quarter of the last fiscal year from the year earlier and dropped 4.9% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 13 cents in the fourth quarter of the last fiscal year and by 8 cents in the third quarter of the last fiscal year.

After sitting in the red the quarter before, the company reported a profit last quarter. The company booked a net loss of $291 million, or 98 cents per share, in the third quarter of the last fiscal year.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the second quarter is 68 cents per share, up from 64 cents ninety days ago. At $3.18 per share, the average estimate for the fiscal year has fallen from $3.19 ninety days ago.

Competitors to Watch: Duke Energy Corporation, The Southern Company, TECO Energy, Inc., SCANA Corporation, Dominion Resources, Inc., American Electric Power Co., Inc., Northeast Utilities System, Entergy Corporation, NextEra Energy, Inc., and FirstEnergy Corp.

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

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