TECO Energy (NYSE:TE) missed on both top- and bottom-line estimates in its earnings report today.
First-quarter 2014 revenue clocked in at $576 million, a sizable step above Q1 2013's $539 million but well below analyst estimates of $681 million. While sales fell far from expectations, TECO Energy's bottom line just missed an earnings match. The utility's adjusted earnings per share came in at $0.22, a penny below estimates.
"We are off to a good start to 2014 and on track to deliver our expected performance this year," said TECO Energy President and CEO John Ramil in a statement today. Looking ahead, Ramil said the company will maintain its current 2014 earnings guidance of $0.95 to $1.05 because of expected "strong performance" from the company's regulated utilities, Tampa Electric and Peoples Gas.
Tampa Electric is benefiting from the 2013 rate case settlement, and both Tampa Electric and Peoples Gas are enjoying strong customer growth from continued improvements in the state and local economies. We effectively concluded two weeks of hearings before the hearing examiner, in the regulatory process for approval of our New Mexico Gas acquisition. We look forward to concluding this process after the hearing examiner's recommendation to the New Mexico Commission, and the Commission's final decision. TECO Coal achieved a nearly $6.00 per ton reduction in cost compared to 2013, which mitigated much of the negative impact of rail service disruptions due to the harsh winter weather.
Net income from Tampa Electric jumped from $31.8 million in Q1 2013 to $45.2 million this quarter, while Peoples Gas edged up $0.8 million to hit $14.6 million .
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