Spectra Energy Corp Earnings: Streak of Two Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component Spectra Energy Corp (NYSE:SE) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the oil and gas company fell to $289 million (44 cents per share) vs. $320 million (49 cents per share) a year earlier. This is a decline of 9.7% from the year earlier quarter.

Revenue: Rose 3.3% to $1.43 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Spectra Energy Corp fell short of the mean analyst estimate of 50 cents per share. It fell short of the average revenue estimate of $1.46 billion.

Quoting Management: “Spectra Energy delivered a year of strong results, achieving record net income and nicely surpassing our earnings target by more than seven percent,” said Greg Ebel, president and chief executive officer, Spectra Energy Corp. “We benefited from expansion projects placed into service, which are delivering attractive returns on capital employed in excess of our targeted 10 to 12 percent range; each of our businesses registered gains for the year; and with the upside of NGL prices, our Field Services business generated cash distributions of nearly $400 million to the company.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 10.2% to $1.12 billion in the third quarter. The figure rose 11.8% in the second quarter from the year earlier and climbed 8.9% in the first quarter from the year-ago quarter.

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose 28.9% in the third quarter and 63.2% in the second quarter.

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by one cent with net income of 38 cents versus a mean estimate of net income of 39 cents per share.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the first quarter of the next fiscal year is now 57 cents per share, down from 59 cents. The average estimate for the fiscal year is $1.81 per share, a rise from $1.80 ninety days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com