Electric utility company FPL Group Inc. (FPL) is slated to announce its first-quarter results before the bell on Tuesday, while a conference call is scheduled at 9:00 AM ET.
Analysts polled by Thomson Reuters are looking for earnings of $0.77 per share, on revenues of $3.57 billion for the quarter. Analysts' estimates typically exclude special items. In the year-ago quarter, the company posted earnings of $0.62 per share and revenues of $3.43 billion.
Last week, FPL Group announced a supply agreement with Silicon Valley's SunPower Corp., under which SunPower will supply its high-efficiency solar photovoltaic panels and proprietary tracking systems to FPL Group subsidiaries Florida Power & Light Co. and NextEra Energy Resources.
SunPower also said that it has separately committed to locating a research and development center in Florida that would employ up to 50 people.
Utility companies are one of the strongest bets in a recession-gripped economy, as it is difficult for people to live without their services. They are highly regulated and have less competition as their territories are more or less insulated from peers, resulting in only one electricity provider in most towns. However, the sector has been slightly affected by the continued decline in electricity sales and usage.
In the preceding fourth-quarter, FPL Group reported a near two-fold jump in profit, boosted by strong performance of its energy subsidiary NextEra Energy Resources, which offset the downturn in Florida Power unit.
The Juno Beach, Florida-based company's fourth-quarter net income advanced to $408 million or $1.01 per share from $224 million or $0.56 per share in the same quarter of last year. Quarterly operating revenues ascended to $4.00 billion from $3.68 billion last year.
At the time, the company also said that it continues to expect full-year 2009 adjusted earnings in the range of $4.05 - $4.25 per share, and fiscal 2010 adjusted earnings to range between $4.50 and $4.90 per share. Analysts expect the company to report earnings of $4.06 per share for the year 2009.
Among other players in the sector, Progress Energy Inc. (PGN) reported fourth-quarter GAAP earnings that rose to $107 million or $0.41 per share, from $103 million or $0.40 per share last year, helped mainly by lower operating expenses and improved margins. However, operating revenues for the quarter dropped to $2.161 billion from $2.202 billion in the previous year.
On February 27, Progress Energy reiterated its full year 2009 ongoing earnings in the range of $2.95 - $3.15 per share. Analysts polled by Thomson Reuters expect the company to earn $3.02 per share for the full year 2009.
Progress Energy is due to release its first-quarter results on May 5, with analysts projecting earnings of $0.61 per share, on revenues of $2.16 billion
Another peer Southern Co. (SO) announced 9% declined in fourth-quarter profit, as the weak economy and mild summer temperatures saw a decline in electricity usage. Net income was $185.6 million or $0.24 per share for the fourth quarter, lower than $204.1 million or $0.27 per share in the prior-year quarter. Revenues for the quarter grew 13.8% to $3.80 billion from $3.34 billion in the same quarter last year.
The Atlanta, Georgia-based company is slated to announce its first-quarter results on Wednesday before the market opens. Wall Street analysts estimate the company to earn $0.41 per share in the quarter on revenues of $3.50 billion.
Another competitor, TECO Energy Inc. (TE) reported a sharp decline in its fourth-quarter profit in the absence of a year-ago asset sale gain. Fourth-quarter net income for TECO Energy plunged to $22.0 million or $0.10 per share from $173.9 million or $0.83 per share in the fourth quarter of 2007. Revenues were down at $770.3 million, compared to $858.3 million in the prior-year quarter.
The Tampa, Florida-based TECO will publish its first-quarter scorecard on May 1, with analysts forecasting earnings of $0.15 per share on revenues of $768.34 million.
FPL closed the Monday's regular trading session at $51.28. In the past 52 weeks, shares have been trading in a range of $33.81 - $68.98.
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