TECO Energy Inc. Earnings: Two Straight Quarters of Profit Drops

S&P 500 (NYSE:SPY) component TECO Energy Inc. (NYSE:TE) reported its results for the first quarter. TECO Energy is an energy-related holding company with regulated electric and gas utility operations in Florida.

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TECO Energy Earnings Cheat Sheet for the First Quarter

Results: Net income for TECO Energy Inc. fell to $50.5 million (24 cents per share) vs. $51.7 million (24 cents per share) a year earlier. This is a decline of 2.3% from the year-earlier quarter.

Revenue: Fell 8.3% to $730 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TECO Energy Inc. fell short of the mean analyst estimate of 25 cents per share. It fell short of the average revenue estimate of $776.8 million.

Quoting Management: TECO Energy President and CEO John Ramil said, “We are pleased to report earnings consistent with last year, despite the mildest winter in 40 years. We are seeing stronger customer growth at our Florida utilities, and the state and local economies are continuing to improve as demonstrated by increasing employment. We are also very pleased with the $4.00 per ton margin expansion that TECO Coal achieved this quarter from better selling prices for its specialty coals from contracts signed in 2011 when prices were stronger.”

Key Stats:

The company’s net income has fallen in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 6.2% from the year-earlier quarter.

For two quarters in a row, the company has come in under analyst estimates. In the fourth quarter of the last fiscal year, it missed expectations by 3 cents with net income of 25 cents versus a mean estimate of net income of 28 cents per share.

Revenue has declined for two quarters in a row. In the fourth quarter of the last fiscal year, revenue declined 3.2% to $750.2 million from the year-earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the second quarter has moved up from 36 cents a share to 37 cents over the last thirty days. For the fiscal year, the average estimate has moved down from $1.39 a share to $1.34 over the last ninety days.

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

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