Xcel Energy Inc. (XEL) reported a lower profit for the third-quarter, reflecting unseasonably cool temperatures, higher operating and maintenance expense, and a rise in overall effective tax rate. On an ongoing basis, earnings declined marginally year-over-year and missed consensus by two cents.
The Minneapolis-based company's earnings available to common shareholders was $219.77 million, compared to $221.73 million in the year-ago quarter. Earnings per share decreased to $0.48 from $0.51 a year ago. Net income was $220.83 million, versus $222.79 million in the third quarter of 2008.
Onoing earnings were $222.13 million or $0.48 per share, lower than $223.27 million or $0.51 in the corressponding quarter a year ago. On average, 8 analysts polled by Thomson Reuters expected the company to report $0.50 per share for the quarter. Analysts' estimates typically exclude special items.
The company attributed the decline in profit to lower sales resulting from cooler temperatures, higher operating and maintenance expense and an increase in the effective tax rate, which was partially offset by an increase in electric margins as a result of several constructive rate case outcomes, including those in Minnesota, Colorado, Texas, New Mexico and Wisconsin.
Total operating revenues dropped to $2.31 billion from $2.85 billion in the prior-year quarter. Analysts had consensus revenue estimate of $3.01 billion for the quarter.
During the quarter, electric revenue fell to $2.13 billion from $2.58 billion, primarily due to the fluctuation of natural gas prices used in the generation of electricity. Natural gas revenue was $169.6 million, down from $258.96 million a year ago. Other revenue for the quarter was $16 million, compared with $16.25 million last year.
The effective tax rate for continuing operations was 38.4% for the third quarter of 2009, compared with 35.3% for the same period in 2008.
Other operating and maintenance expenses were $466.46 million, higher than $422.56 million in the third-quarter of 2008. Operating income grew to $465.15 million from $447.99 million a year ago.
For the nine-month period, the company posted earnings available to common shareholders of $508.82 million or $1.11 per share, compared to $478.3 million or $1.10 per share in the year-ago quarter. Total operating revenues decreased to $7.03 billion from $8.49 billion in the comparable period.
Richard Kelly, chairman and chief executive officer, said, "Throughout the year, we have acted to offset the impact of lower sales, due to both unfavorable temperatures and economic conditions, through various cost management initiatives."
Looking ahead to fiscal 2009, Xcel Energy now expects earnings to be near the mid-point of its prior guidance range of $1.45 -$1.55 per share. Wall Street analysts estimate earnings of $1.49 per share.
Among others in the industry, CenterPoint Energy, Inc., (CNP)'s third-quarter earnings were $114 million or $0.31 per share, compared to $136 million or $0.39 per share in the same period of 2008. Total revenue for the quarter dropped to $1.58 billion from $2.51 billion in the year-ago quarter.
Electric utility company American Electric Power Co., Inc. (AEP) posted net income of $443 million or $0.93 per share for the third quarter, compared to $374 million or $0.93 per share in the prior-year quarter. Revenues for the quarter plunged to $3.5 billion from $4.2 billion the same quarter last year.
Xcel Energy is currently trading at $19.16, down $0.07 or 0.36%. In the past 52-week period, the stock has been trading in the range of $16.01 to $20.29.
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