Spectra Energy Earnings: Why the Profits Continue

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Spectra Energy Corp (NYSE:SE) from reporting a profit boost in the first quarter. Spectra Energy, through its subsidiaries and equity affiliates, owns and operates natural gas-related energy assets.

Investing Insights: What’s the Future of Microsoft’s Stock?

Spectra Energy Earnings Cheat Sheet for the First Quarter

Results: Net income for Spectra Energy Corp rose to $333 million (51 cents per share) vs. $48.9 million (55 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.

Revenue: Fell 4.2% to $1.54 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Spectra Energy Corp fell short of the mean analyst estimate of 53 cents per share. It fell short of the average revenue estimate of $1.62 billion.

Quoting Management: “Spectra Energy Partners’ portfolio of stable, fee based assets once again delivered solid results for the quarter,” said Julie Dill, president and chief executive officer. “As a result, Spectra Energy Partners was able to deliver to its unitholders its 18th consecutive quarterly cash distribution increase.”

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 11.8%.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 6 cents in the fourth quarter of the last fiscal year and by one cent in the third quarter of the last fiscal year.

Looking Forward: Expectations for the company’s next-quarter results are lower than they have been. Over the past sixty days, the average estimate for second quarter has fallen from 42 cents per share to 40 cents. In the past month, the average estimate for the fiscal year has fallen from $1.91 per share to $1.88 abs.

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

Don’t Miss These Additional Hot Stories:

Here’s the Secret Behind Apple’s Success>>

Here’s How to Bet on a Baby Boom>>

Amazon and Apple Exemplify the Future of Retail>>