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 Corp Earnings Cheat Sheet
Results: Net income for Spectra Energy Corp fell to $179 million (27 cents per share) vs. $254 million (39 cents per share) a year earlier. This is a decline of 29.5% from the year-earlier quarter.
Revenue: Fell 4.5% to $1.07 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Spectra Energy Corp fell short of the mean analyst estimate of 31 cents per share. It fell short of the average revenue estimate of $1.62 billion.
Quoting Management: “Spectra Energy’s fee-based businesses continued to generate strong earnings and cash flows, helping to lessen the effects of lower commodity prices,” said Greg Ebel, president and chief executive officer, Spectra Energy Corp. “Industry fundamentals and our commitment to delivering superior total shareholder return remain strong, as underlined by our action to increase the quarterly dividend, effective with the fourth quarter 2012 payment. Looking ahead, we remain confident in our ability to secure and deliver growth for our investors through realizing at least $20 billion in expansion projects by the end of the decade.”
The company has now seen net income fall for four quarters in a row. In the second quarter, net income fell 24.3% while the figure fell 6.7% in the first quarter and 9.7% in the fourth quarter of the last fiscal year.
The company has missed analyst estiamtes for four quarters in a row. It fell short by 3 cents in the second quarter, by 2 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.
Revenue has been on the decline for three quarters in a row. In the second quarter, revenue declined 6.4% to $1.11 billion while the figure fell 4.2% in the first quarter from the year earlier.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 44 cents a share to 41 cents over the last ninety days. At $1.58 per share, the average estimate for the fiscal year has fallen from $1.65 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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