Pepco Holdings Turns To Profit In Q1, Backs Full-year View - Update

(RTTNews) - Electric and natural gas utility company Pepco Holdings, Inc. (POM) Wednesday reported a profit for the first quarter compared to a loss last year, citing higher electric distribution revenue, lower operation and maintenance expense and higher weather related sales in its service territories.

Earnings per share beat analysts' expectations. The company also reaffirmed its earnings guidance for full year 2014.

On April 29, Pepco Holdings and the largest U.S. nuclear operator Exelon Corp. (EXC) entered into an agreement and plan of merger, where Exelon will acquire Pepco Holdings for an all-cash transaction consideration of $27.25 per share that comes to around $6.8 billion. The closing of the deal is expected in the second or third quarter of 2015.

For the first quarter, the company posted net income of $75 million or $0.30 per share, compared to a net loss of $430 million or $1.82 per share in the prior year.

Excluding items, adjusted earnings from continuing operations for the prior year were $0.24 per share.

On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude special items.

The prior year had a loss from discontinued operations totaling $1.35 per share.

Joseph Rigby, chairman, president and chief executive officer of the company said, "The significant investments we have made in the electric system have resulted in a more resilient electric grid and the increase in earnings in the first quarter of 2014 reflects the impact of these investments." Operating revenue increased to $1.33 billion from $1.18 billion a year ago. Analysts estimated revenues of $1.06 billion for the quarter.

For full year 2014, the company continues to expect earnings in a range of $1.12 and $1.27 per share, while Street is currently looking for earnings of $1.22 per share. POM closed Tuesday's regular trading at $27.30 on the NYSE.