TECO Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component TECO Energy, Inc. (NYSE:TE) will unveil its latest earnings on Thursday, November 1, 2012. TECO Energy is an energy-related holding company with regulated electric and gas utility operations in Florida.

TECO Energy, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 38 cents per share, a decline of 9.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 43 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 41 cents during the last month. Analysts are projecting profit to rise by 8.7% compared to last year’s $1.16.

Past Earnings Performance: The company showed profit of 34 cents per share versus a mean estimate of net income of last quarter. This marks the fourth month of falling short of estimates.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 8.4% in revenue from the year-earlier quarter to $835 million.

A Look Back: In the second quarter, profit fell 5.7% to $73.1 million (34 cents a share) from $77.5 million (36 cents a share) the year earlier, missing analyst expectations. Revenue fell 11% to $788.4 million from $885.7 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.0 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 6.2% in the fourth quarter of the last fiscal year, by 2.3% in the first quarter and again in the second quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 3.2% in the fourth quarter of the last fiscal year and 8.3% in first quarter before falling again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with nine of 14 analysts surveyed giving that rating.

Stock Price Performance: Between October 22, 2012 and October 26, 2012, the stock price dropped 19 cents (-1.1%), from $17.80 to $17.61. The stock price saw one of its best stretches over the last year between June 7, 2012 and June 19, 2012, when shares rose for nine straight days, increasing 3.6% (+63 cents) over that span. It saw one of its worst periods between June 19, 2012 and June 26, 2012 when shares fell for six straight days, dropping 3% (-55 cents) over that span.

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

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