Thursday, energy delivery company NSTAR (NST) reported a 3% year-over-year increase in profit for the first quarter, helped by a 5.8% increase in quarterly operating revenues. Earnings per share for the quarter grew 3.6%, and topped analysts' expectations by two cents. The company also reaffirmed its earnings forecast for fiscal 2009.
In a statement, chairman, president and chief executive officer, Thomas May said, "Although we expect 2009 to present some challenges, we will not waver from our ongoing commitment to provide our customers with the high-quality service that they deserve and have come to expect. I am pleased to report that our service quality performance was the best in Massachusetts in 2008, and for the first quarter of this year was again very strong."
The Boston, Massachusetts-based company reported net income of $61.04 million or $0.57 per share for the first quarter, higher than $59.24 million or $0.55 per share in the prior-year quarter. On average, six analysts polled by Thomson Reuters projected earnings of $0.55 per share for the first quarter.
The company noted that the profit growth is attributable to a decline in O&M costs, higher electric transmission and distribution revenues and a 3% increase in gas sales. These were partially offset by increases in depreciation and property taxes as well as a 2.2% decline in electric sales.
Operating revenues for the quarter increased 5.8% to $947.79 million from $895.58 million in the same quarter last year.
The company also noted that it plans to increase investment in energy efficiency programs and to launch a Smart Grid pilot program that will use technology already in place in most homes.
The customers would be with the real-time information, including prices, they need to reduce energy usage by utilizing advanced technology to pair existing automated meter reading equipment with a customer's Internet service. This would help customers manage energy usage while keeping costs down.
For the twelve months ending with the first quarter, net income increased 2.8% to $239.35 million or $2.24 per share from $232.93 million or $2.18 per share in the prior-year period.
Operating revenues for the twelve-month period rose 7.1% to $3.40 billion from $3.17 billion in the same period last year.
Looking ahead, the company reaffirmed its fiscal year 2009 earnings outlook in a range of $2.33 to $2.43 per share. The Street is currently looking for fiscal 2009 earnings of $2.35 per share.
NST closed Thursday's regular trading session at $31.41, up $0.45 or 1.45% on a volume of 0.90 million shares, higher than the three-month average volume of 0.84 million shares.
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