WGL Holdings Inc. (NYSE:WGL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
WGL Holdings Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 10.76% to $1.75 in the quarter versus EPS of $1.58 in the year-earlier quarter.
Revenue: Rose 6.19% to $891.38 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: WGL Holdings Inc. reported adjusted EPS income of $1.75 per share. By that measure, the company beat the mean analyst estimate of $1.47. It beat the average revenue estimate of $854.07 million.
Quoting Management: “I am happy to announce second quarter non-GAAP earnings per share of $1.75, an increase of 11% over the prior year,” said Terry McCallister, Chairman and Chief Executive Officer of WGL Holdings. “Earnings improved in both our utility and non-utility businesses for the quarter, reflecting our continued effective execution against our long range goals. For the full year we are increasing our guidance for non-GAAP earnings, primarily driven by lower O&M spending in our utility operations. Another significant event occurred on April 26, as we filed a rate case with the Maryland Public Service Commission requesting a revenue increase of $30.7 million. This request reflects recent increases in our pipeline replacement spending in Maryland as well as higher O&M costs. This action supports our plans to maintain a strong earnings contribution from our utility business as we increase replacement spending to ensure a safe and reliable distribution system.”
Key Stats (on next page)…
Revenue increased 29.8% from $686.74 million in the previous quarter. EPS increased 53.51% from $1.14 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 $0.01 to a loss $0. For the current year, the average estimate has moved up from a profit of $2.43 to a profit of $2.45 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)