Pepco's Q3 net earnings more than quadruple year-over-year to US$80M on easy comparisons to last year's Q3, which was weighed down by one-time charges; revenue down 21% to US$1.64B
November 4, 2011
– Power company Pepco Holdings Inc. said Friday its third-quarter profit more than quadrupled on easy comparisons to last year's third quarter, which was weighed down by one-time charges.
Pepco earned $80 million, or 35 cents per share, up from $17 million, or 9 cents per share, for the same quarter last year. Revenue fell 21 percent to $1.64 billion from $2.07 billion.
The results fell short of wall Street predictions. Analysts, on average, expected a profit of 41 cents per share on $2.01 billion in revenue, according to a FactSet poll.
Excluding charges related to discontinued operations, the extinguishment of debt, restructuring and divestiture-related claims, Pepco posted an adjusted profit from continuing operations of $116 million, or 52 cents per share, for the 2010 quarter. The recent quarter did not include any special items.
The company attributed the drop in adjusted profit to higher power delivery operation and maintenance expenses, mainly related to increased preventative maintenance and tree trimming. The 2010 quarter also included favorable income tax adjustments.
Pepco raised the low end of its 2001 profit prediction to a range of $1.15 per share to $1.25 per share, from its previous estimate of $1.10 per share to $1.25 per share. Analysts polled by FactSet expect a profit of $1.24 per share for the year.
In pre-market trading, Pepco shares rose 64 cents, or 3.2 percent, to $20.50.
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