Pepco Holdings (POM) , a provider of power and natural gas, said its third-quarter earnings fell 38.1% from the year-ago period, hurt by milder weather, lower network transmission revenue, lower generating output at Conectiv Energy units and higher fuel costs.
The Washington, D.C.-based company earned $104 million, or 54 cents a share, in the quarter, compared with $168 million, or 89 cents a share, a year ago. Excluding items, the company earned $111.9 million, or 58 cents a share. Analysts polled by Thomson First Call were expecting earnings of 74 cents a share in the most recent quarter.
Third-quarter revenue rose 4.3% from a year ago to $2.6 billion vs. analysts' estimate of $2.49 billion.
"Earnings for the quarter clearly were negatively impacted by the weather relative to last year, driven by a 15% decrease in cooling degree days," the company said. "We continue to make progress in the execution of our regulatory plan. In August, we filed for a distribution rate increase for our gas delivery business, and we still anticipate filing three electric distribution cases prior to year-end."
Operating income for the quarter fell 34.1% from a year ago to $242.8 million and operating margin dropped 540 basis points to 9.4%.
Third-quarter revenue from Power Delivery rose 10.6% from a year ago to $1.66 billion and revenue from Pepco Energy Services rose 14.7% to $488.3 million. However, revenue from Conectiv Energy fell 22.7% to $633.6 million.
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