Electric utility provider, PNM Resources, Inc. PNM posted fourth-quarter 2014 ongoing earnings of 24 cents per share, beating the Zacks Consensus Estimate of 23 cents by 4.3%. Reported earnings were also up 14.3% from 21 cents a year ago primarily driven by rate relief.
For 2014, PNM Resources’ ongoing earnings climbed 5.7% year over year to $1.49 per share.
On a GAAP basis, the company’s earnings were $1.45 per share compared with $1.25 per share a year ago. The variance between GAAP and ongoing earnings was primarily due to the combined impact of the New Mexico corporate income tax rate change, mark-to-market effect of economic hedges, unrealized impairment charges, charges related to process improvement, audit arbitration of San Juan Coal Company and regulatory disallowance.
Total Revenue
In fourth-quarter 2014, PNM Resources’ total operating revenue of $346.9 million surpassed the Zacks Consensus Estimate of $300.5 million by 15.4%. Quarterly revenues were also higher than the year-ago figure of $322.9 million by 7.4%.
In 2014, total operating revenue was $1,435.9 million, up 3.5% year over year. The improved performance was primarily due to customer growth at the company’s Public Service Company of New Mexico and Subsidiaries (“PNM”) and increased retail load at Texas-New Mexico Power Company and Subsidiaries (“TNMP”) driven by a boost in commercial class.
Operational Results
In 2014, total operating expenses increased 3.2% year over year to $1,136.2 million primarily due to a rise in cost of energy, energy production costs, depreciation expenses and taxes (other than income taxes).
The company’s annual operating income rose 4.5% year over year to $299.7 million.
PNM Resources’ interest charges in 2014 were $119.6 million in 2014 compared with $121.4 million a year ago.
Financial Condition
Long-term debt was $1,975.1 million as of Dec 31, 2014, up from $1,745.4 million at the end of Dec 31, 2013.
Guidance
PNM Resources reiterated its 2015 ongoing earnings guidance in the range of $1.50–$1.62 per share.
The company has a capital spending plan of $2.2 billion over 2015–2019.
Peer Comparison
American Electric Power Company Inc. AEP reported fourth-quarter 2014 operating earnings of 48 cents per share, missing the Zacks Consensus Estimate by 7.7%.
CMS Energy Corp. CMS reported fourth-quarter 2014 adjusted earnings per share of 35 cents, lagging the Zacks Consensus Estimate by a penny.
DTE Energy Co. DTE reported fourth-quarter 2014 operating earnings per share of $1.17, beating the Zacks Consensus Estimate by 12.5%.
Zacks Rank
PNM Resources currently has a Zacks Rank #2 (Buy).
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