Nicor Inc. Earnings Cheat Sheet: Misses Expectations as Profit Falls

S&P 500 (NYSE:SPY) component Nicor Inc. (NYSE:GAS) reported a lower net income in third quarter, missing analysts’ estimates. Nicor is a holding company which serves 2.2 million customers in most of the northern third of Illinois.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Nicor Earnings Cheat Sheet for the Third Quarter

Results: Net income for the gas utilities company fell to $5.7 million (12 cents per share) vs. $13.6 million (30 cents per share) a year earlier. This is a decline of 58.1% from the year earlier quarter.

Revenue: Fell 1.2% to $348.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: GAS fell short of the mean analyst estimate of 30 cents per share. Analysts were expecting revenue of $352 million.

Quoting Management: “Continued cost controls, together with the colder than expected weather, have allowed Nicor Gas to deliver year-to-date results that are ahead of budget,” said Russ Strobel, Nicor’s Chairman, President and Chief Executive Officer. “However, Tropical Shipping’s third quarter revenues were lower than we had expected, as volumes continued to be negatively impacted by the challenging markets in the Bahamas and Caribbean. Meanwhile, we remain focused on obtaining the final regulatory approval needed to complete our merger with AGL Resources.”

Key Stats:

The company fell short of forecasts after beating estimates in the previous two quarters. In the second quarter, it topped the mark by 10 cents, and in the first quarter, it was ahead by 6 cents.

Net income has dropped 26.3% year over year on average across the last five quarters. Performance was hurt by a 58.1% decline in the most recent quarter from the year earlier quarter.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 12.1% to $477 million in the second quarter from the year earlier.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 80 cents per share, down from 84 cents ninety days ago. At $2.49 per share, the average estimate for the fiscal year has fallen from $2.67 ninety days ago.

Competitors to Watch: Piedmont Natural Gas Co., Inc. (NYSE:PNY), Vectren Corporation (NYSE:VVC), AGL Resources Inc. (NYSE:AGL), Atmos Energy Corporation (NYSE:ATO), The Laclede Group, Inc. (NYSE:LG), South Jersey Industries (NYSE:SJI), New Jersey Resources Corp. (NYSE:NJR), Energy Incorporated (AMEX:EGAS), Northwest Natural Gas (NYSE:NWN), and National Fuel Gas Co. (NYSE:NFG).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)