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Progress Energy tops Street expectations on earnings

Posted August 4, 2011

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— Progress Energy (NYSE: PGN) beat quarterly Wall Street earnings expectations for the second quarter even though revenues declined from a year ago, the company reported Thursday.

The company, which is in the process of merging with Duke Energy (NYSE: DUK), reported revenues of $2.256 billion. That’s down from $2.372 billion from 2010.

However, Progress improved earnings to $211 million or 71 cents per share. That was 7 cents higher than the consensus of analysts polled by Capital IQ. A year ago, earnings were $181 million or 63 cents per share.

Analysts did expect slightly higher revenues at $2.29 billion.

Progress also reaffirmed its full-year earnings estimate of between $3.02 and $3.20 a share.

"Favorable weather in the second quarter, coupled with continued financial discipline within the company, helped us successfully deliver on our earnings per share goal for the first half of the year," said Bill Johnson, Progress Energy’s chairman and chief executive officer, in a statement. "We continue to feel the effects of a challenging economy in our service area, but we remain focused on managing the business effectively and making wise investments to meet our customers' needs today and in the future, as we prepare for our pending merger with Duke Energy."

Read the earnings report here.

9 Comments

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  • Gadwall Aug 4, 2011

    Again, electric utilities in NC (Duke, Progress and Dominion) don’t make any profit on fuel. That’s the law. And for a utility, “fuel” is mainly coal, natural gas and uranium. Not the same price curve as gasoline.

  • archangel44369 Aug 4, 2011

    It's funny, progress energy submitted to the powers to be for a rate hike to cover the cost of fuel. If I recall, didn't they get one when fuel was like $4.50 a gallon??? And since that increase, fuel has not surpassed $4.50 a gallon, and now we read they are doing really great in the profit margin?
    Shakes head.

  • Gadwall Aug 4, 2011

    Last time Progress Energy asked for a base rate increase was around 1988. There is one annual adjustment for fuel costs, but it's a straight pass through (no profit on fuel). In 2010 the fuel piece actually went down, so it was a rate reduction. We're fortunate in the Carolinas (and in the Southeastern US in general) to have some of the lowest electric rates in the country, so I'm not complaining. Move to New England, New York, or California and you'll realize we have it pretty good!

  • AWakeMom Aug 4, 2011

    Wall Street has been running the county for quite some time. They determine our country's financial stability. They make gas prices rise and fall -- depends on how the wind blows.

  • cantstandya Aug 4, 2011

    Is it just me or is wall street running this country,and if so why do we have all of these government positions when we could just sit back and let the stock market analyst take where we are headed.

  • kcollier39 Aug 4, 2011

    big profits for them just like the oil companies,good deal now i think its time to raise the price of electricity being that we are in a double dip recession.400.00 dollars a month for gas,and a 500.00 dollar a month light bill,now i have extra money to spend.

  • EasyU Aug 4, 2011

    Yeah, if they can continue to hold steady or above thru merger time, the new company will come out in great shape thereafter.

  • Rebelyell55 Aug 4, 2011

    What in the world, did'nt Duke or one of these just ask for a rate hike from the Regulators? Did they get it? I believe the story was posted here in early July.

  • whatelseisnew Aug 4, 2011

    Excellent.