ITC Holdings Q3 Profit Rises, Lifts FY09 Earnings View, Backs FY10 Outlook

10/28/2009 8:55 PM ET

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(RTTNews) - Power transmission company ITC Holdings Corp. (ITC: News ), Wednesday reported an increase in third quarter profit on lower operating expenses that more than offset a decline in revenue for the period. The company reaffirmed its earnings guidance for fiscal 2010, while lifting earnings outlook for the full year 2009, indicated to come in above estimates.

Novi, Michigan- based ITC reported third-quarter net income of $37.82 million compared with $28.05 million last year. Earnings per share increased to 74 cents from 55 cents a year ago. Earnings for the quarter included $0.11 per share associated with the recognition of regulatory assets at ITC Great Plains.

On average, 4 analysts polled by Thomson Reuters expected the company to earn 60 cents per share for the quarter. Analysts' estimates typically exclude special items.

Third quarter operating revenues decreased to $151.33 million from $163.28 million last year, on expense mitigation efforts, higher capitalization, and an increase in regional cost sharing revenues, partially offset by a higher rate base in certain areas.

However, the company posted higher operating income for the quarter at $89.06 million, compared with $74.44 million, helped by lower operating expenses. Operating expenses for the quarter declined to $62.27 million from $88.85 million recorded in the corresponding quarter last year.

Net income for the nine months ended September 30, 2009 was $97.3 million or $1.92 per share, compared with $82.2 million or $1.64 per share for the same period last year. Revenues for the nine-month period were lower at $464.5 million compared with $465.8 million last year.

Looking ahead for the full year 2009, ITC increased its earnings guidance to a range of $2.47 to $2.52 per share, while analysts expect earnings of $2.36 per share.

For 2010, the company reaffirmed its earnings expectation of $2.52 to $2.62 per share, with earnings now expected at the high end of the range. Analysts anticipate earnings of $2.62 per share for the year.

ITC ended Wednesday's regular trading at $44.21, up 50 cents or 1.14%, on the New York Stock Exchange. In after-hours , the share gained 29 cents, trading at $44.50.