TECO Energy Earnings: Here’s Why Investors are Ambivalent Now

TECO Energy, Inc. (NYSE:TE) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

TECO Energy, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 17.39% to $0.19 in the quarter versus EPS of $0.23 in the year-earlier quarter.

Revenue: Decreased 9.44% to $661.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TECO Energy, Inc. reported adjusted EPS income of $0.19 per share. By that measure, the company beat the mean analyst estimate of $0.17. It missed the average revenue estimate of $668.1 million.

Quoting Management: TECO Energy President and Chief Executive Officer John Ramil said, “We are off to a good start for 2013, and our results this quarter position us well for the remainder of the year despite another mild winter in Florida. The utilities are benefiting from continued improvements in the state and local economies, and TECO Coal is operating profitably even in a weak market, with a strong focus on margins and cost control.”

Key Stats (on next page)…

Revenue decreased 3.97% from $688.4 million in the previous quarter. EPS decreased 13.64% from $0.22 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.34 to a profit $0.27. For the current year, the average estimate has moved down from a profit of $1.14 to a profit of $0.96 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)