Spectra Energy Corp Earnings Cheat Sheet: Second Straight Quarter of Rising Net Income

S&P 500 (NYSE:SPY) component Spectra Energy Corp (NYSE:SE) reported its results for the third quarter. Spectra Energy, through its subsidiaries and equity affiliates, owns and operates natural gas-related energy assets.

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Spectra Energy Earnings Cheat Sheet for the Third Quarter

Results: Net income for Spectra Energy Corp rose to $254 million (39 cents per share) vs. $197 million (30 cents per share) in the same quarter a year earlier. This marks a rise of 28.9% from the year earlier quarter.

Revenue: Rose 10.2% to $1.12 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SE reported adjusted net income of 38 cents per share. By that measure, the company fell short of mean estimate of 39 cents per share. It fell short of the average revenue estimate of $1.15 billion.

Quoting Management: “We delivered solid results ahead of our expectations and exceeded last year’s ongoing net income by 23 percent. All of our businesses continued to perform very well and are realizing earnings growth from expansion projects placed into service at attractive rates of return,” said Greg Ebel, president and chief executive officer, Spectra Energy Corp. “Given our strong year-to-date performance and the positive trends we are continuing to see during the fourth quarter, we expect to exceed our $1.65 EPS target.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 11.8% to $1.19 billion in the second quarter. The figure rose 8.9% in the first quarter from the year earlier and climbed 6.5% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 2 cents, and in the first quarter, it was ahead by 3 cents.

Net income has increased 28.2% year over year on average across the last five quarters. The biggest gain came in the second, when income climbed 63.2% from the year earlier quarter.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the fourth quarter is now at 45 cents per share, up from 45 cents. For the fiscal year, the average estimate has moved up from $1.76 a share to $1.80 over the last ninety days.

Competitors to Watch: Southern Union Company (NYSE:SUG), El Paso Corporation (NYSE:EP), Spectra Energy Partners, LP (NYSE:SEP), Sempra Energy (NYSE:SRE), Enterprise Products Partners L.P. (NYSE:EPD), Duncan Energy Partners L.P. (NYSE:DEP), Kinder Morgan Energy Partners LP (NYSE:KMP), DCP Midstream Partners, LP (NYSE:DPM), Copano Energy, L.L.C. (NASDAQ:CPNO), and TC Pipelines, LP (NASDAQ:TCLP).

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(Source: Xignite Financials)