WASHINGTON (dpa-AFX) - Utilities company Pepco Holdings, Inc. (POM) on Friday reported a 6 percent increase in profit for the first quarter, as lower operating expenses and favorable tax adjustments helped offset a decline in revenue due to the impact of warm winter weather. Looking ahead, the company reaffirmed its earnings outlook for fiscal 2012.
Pepco Holdings reported an increase in adjusted net income from continuing operations for the quarter, reflecting the favorable impact of income tax adjustments, and higher transmission and distribution revenue due to higher rates driven by increased investment.
These were partially offset by lower distribution revenue due to lower electric distribution sales in the company's service territories that do not have revenue decoupled from sales, primarily from the effect of milder than normal winter weather.
Joseph Rigby, Chairman, President and Chief Executive Officer of Pepco Holdings said, 'Our earnings from continuing operations reflect our investment in utility infrastructure, as well as the positive impacts of tax adjustments which more than mitigated the effects of the mild winter weather we experienced in our service area.'
Pepco Holding's net income for the first quarter was $68 million or $0.30 per share, up from $64 million or $0.28 per share in the year-ago period.
Adjusted earnings per share from continuing operations rose to $0.30 from $0.28 in the prior-year quarter. On average, 8 analysts polled by Thomson Reuters expected the company to earn $0.24 per share. Analysts' estimates typically exclude special items.
Total operating revenue for the quarter declined 21 percent to $1.29 billion from $1.63 billion a year ago. Analysts had a consensus revenue estimate of $1.87 billion.
Looking ahead to fiscal 2012, Pepco Holdings reaffirmed its earnings guidance in a range of $1.15 to $1.30 per share. Analysts expect the company to earn $1.24 per share for the year.
In Friday's regular session, POM is trading at $18.78, up $0.17 or 0.91 percent on a volume of 270,025 shares.
Copyright RTT News/dpa-AFX
© 2012 AFX News
