PNM Posts 1Q Profit, Reversing Loss

ALBUQUERQUE, N.M. (AP) — Energy holding company PNM Resources Inc. said Friday it posted a first-quarter net profit of $95.4 million, reversing a loss from a year earlier, driven mainly by the sale of its natural gas utility.

Net profit in the quarter to March 31 amounted to $1.04 per share, compared with a loss of $48.6 million, or 63 cents per share, in the prior-year period.

PNM, which serves customers in New Mexico and Texas, said the sale of PNM Gas in January to New Mexico Gas Co. added $72.9 million, or 80 cents per share, in the quarter.

The company said adjusted earnings from continuing operations hit 10 cents per share, up from 5 cents per share in the same period a year ago.

Revenue grew 6 percent to $385.9 million from $364.5 million a year earlier.

Analysts polled by Thomson Reuters expected, on average, a loss of 6 cents per share on revenue of $368 million. Analyst estimates typically exclude one-time items.

Texas-based First Choice Power, one of PNM's subsidiaries, reported earnings of $7 million, or 7 cents per share, up from a loss of $24 million, or 31 cents per share, a year earlier.

The company maintained its outlook for fiscal 2009 of earnings per share of 25 cents to 40 cents.

PNM shares rose 82 cents, or 9.6 percent, to close at $9.34 on Friday after the results were announced.