WGL Holdings Earnings: Here’s Why Shares are Up Now

WGL Holdings Inc. (NYSE:WGL) had a loss 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. Shares are down 0.59%.

WGL Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.03 in the quarter versus EPS of $0.08 in the year-earlier quarter.

Revenue: Rose 9.08% to $478.12 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: WGL Holdings Inc. reported adjusted EPS loss of $0.03 per share. By that measure, the company beat the mean analyst estimate of $-0.09. It beat the average revenue estimate of $451.44 million.

Quoting Management: “I am pleased to announce third quarter and year to date results that leave us positioned to deliver on our long-term 7% earnings growth plan,” said Terry McCallister, Chairman and Chief Executive Officer of WGL Holdings. “For the remainder of fiscal year 2013, we are affirming our previously announced range of corporate non-GAAP guidance. Although our non-utility businesses will be challenged to meet our expectations this year, mostly due to underperformance at our wholesale solutions business, our regulated utility is on pace to exceed our expectations this year. The recent decision in the District of Columbia rate case, continued success in deploying solar solutions and our announced participation in the Constitution Pipeline are all examples of our focus on driving earnings growth from regulated and utility-like investments.”

Key Stats (on next page)…

Revenue decreased 46.36% from $891.38 million in the previous quarter. EPS decreased to $-0.03 in the quarter versus EPS of $1.75 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 loss of $0.22 to a loss $0.28. For the current year, the average estimate has moved up from a profit of $2.47 to a profit of $2.5 over the last ninety days.

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