Thursday, energy delivery company NSTAR (NST) reported a 13% increase in fourth quarter earnings, which met market estimates, helped by higher distribution revenues and lower operations and maintenance costs. The company also provided guidance for fiscal 2010.
Quarterly earnings increased 13.1% to $47.6 million, from $42.1 million in the corresponding period last year. Earnings per share rose 15.4% to $0.45 from $0.39 per share in the same period last year, and was in line with the estimate of $0.45 per share projected by seven analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
The Boston headquartered company attributed this positive performance to higher electric distribution revenues and lower operations and maintenance costs. These positive factors outweighed the impact of electric and gas sales declines of 1.3% and 1.8%, respectively.
Operating revenues from continuing operations for the quarter declined 8.8% to $712.55 million from $781.5 million a year earlier. The company attributed the decline unfavorable weather conditions.
For the twelve-month period, earnings increased to $253.25 million or $2.37 per share from $237.55 million or $2.22 per share last year. Operating revenues from continuing operations declined to $3.05 billion from $3.21 billion in the previous year. Analysts expected the company to earn $2.36 per share on revenues of $3.31 billion.
Looking ahead, earnings for 2010 are expected to be in the range $2.45 to $2.55 per share, which excludes the anticipated gain on the pending sale of MATEP for $320 million, announced in December last year. Currently, Street analysts expect the company to report earnings of $2.53 per share for 2010.
For 2010, the company expects main drivers of earnings to be, among others, performance-based rate adjustment effective January 1, 2010 of 1.32%, electric sales increase of about 2%, and interest costs savings due to recent refinancing of long-term debt at lower interest rates. In addition, the company also expects its 2010 net income to be impacted by an increase of approximately $15 million in operations and maintenance expenses.
NST declined $0.11 or 0.31% and closed Thursday's regular trading at $35.28.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.