Spectra Energy Earnings Cheat Sheet: Beats Estimates on Profit Boost

S&P 500 (NYSE:SPY) component Spectra Energy Corp (NYSE:SE) reported its results for the second quarter. Spectra Energy Corp. 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 Second Quarter

Results: Net income for Spectra Energy Corp rose to $284 million (44 cents per share) vs. $174 million (27 cents per share) in the same quarter a year earlier. This marks a rise of 63.2% from the year earlier quarter.

Revenue: Rose 11.8% to $1.19 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: SE beat the mean analyst estimate of 40 cents per share. It fell short of the average revenue estimate of $1.22 billion.

Quoting Management: “We had another very good quarter, delivering earnings ahead of our expectations and exceeding last year’s net income by 58 percent. The quarter’s results reflect earnings growth from our expansion projects, higher commodity prices and a stronger Canadian dollar,” said Greg Ebel, president and chief executive officer, Spectra Energy Corp. “We continue to successfully execute on our significant capital expansion plan, with realized returns at the high end of our expectations,” he said.

Key Stats:

Revenue has risen the past four quarters. Revenue increased 8.9% to $1.61 billion in the first quarter. The figure rose 6.5% in the fourth quarter of the last fiscal year from the year earlier and climbed 9.2% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 3 cents in the first quarter and by 7 cents in the fourth quarter of the last fiscal year.

The increase in profit last quarter comes after net income fell in the previous quarter. In the first quarter, net income declined 0.3% to $357 million.

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)

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