Utility Company Pepco Holdings Q3 Profit Edges Up; Narrows 2013 Outlook

(RTTNews) - Electric and natural gas utility company Pepco Holdings, Inc. (POM) reported Wednesday a profit for the third quarter that grew from last year, drive by lower operation and maintenance expense as well as increased electric distribution revenues amid higher rates.

Earnings per share from continuing operations came in below analysts' expectations by a penny. The company also narrowed its earnings forecast range for the full-year 2013.

"Our third quarter results reflect the positive impact of our continued investment in utility infrastructure. Over the next five years, we expect to spend $5.8 billion on additional investments aimed at replacing aging infrastructure and installing advanced technologies," Chairman, President and CEO Joseph Rigby said in a statement.

The Washington, DC-based company, one of the largest energy delivery companies in the Mid-Atlantic region, reported a net income of $118 million or $0.48 per share for the third quarter, compared to $112 million or $0.49 per share in the prior-year quarter.

Net income from continuing operations for the quarter grew to $110 million or $0.44 per share from $87 million or $0.38 per share last year.

On average, 13 analysts polled by Thomson Reuters expected the company to post earnings of $0.45 per share for the quarter. Analysts' estimate typically excludes one-time items.

Total operating revenues for the quarter declined to $1.34 billion from $1.39 billion in the same quarter last year. Wall Street analysts had a consensus revenue estimate of $1.62 billion for the quarter.

The company's power delivery electric sales for the quarter declined to 13,335 gigawatt hours or Gwh, from last year's 14,371 Gwh.

Operating income for the quarter was $235 million, higher than $201 million in the prior-year quarter, as total expenses decreased to $1.11 billion from $1.19 billion in the prior-year quarter.

Looking ahead to fiscal 2013, Pepco Holdings narrowed its adjusted earnings guidance to a range of $1.08 to $1.18 per share from its earlier range of $1.05 to $1.20 per share. Street is currently looking for full-year 2013 earnings of $1.12 per share.

In Wednesday's regular trading session, POM is currently trading at $19.345, up $0.17 or 0.87% on a volume of 0.16 million shares.