PNM Resources' Profit Rises

Diversified utility company PNM Resources(PNM Quote) said third-quarter earnings rose 54% from a year ago, helped by improved performance at baseload power plants and a new acquisition.

The New Mexico-based company earned $43.8 million, or 62 cents a share, compared with $28.5 million, or 41 cents a share, a year ago. Adjusted for items, earnings were 63 cents a share. Analysts polled by Thomson First Call were expecting earnings of 62 cents a share in the most recent quarter.

Third-quarter revenue rose 9% from a year ago to $650.2 million.

The company reaffirmed the full-year ongoing earnings guidance of $1.65 a share to $1.90 a share as compared with analysts' expectations of $1.75 a share.

"In addition to improved plant performance, First Choice Power continued its trend of strong earnings," the company said. "The current earnings of PNM gas and electric utilities are declining despite solid customer growth, underscoring the need for rate adjustments. In May we filed for a gas rate increase of $20.7 million and we will file an electric rate case either late this year or early next year with any rate change to be effective January 2008."