AGL Resources Inc. Earnings: Revenue and Net Income Grow

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S&P 500 (NYSE:SPY) component AGL Resources Inc. (NYSE:GAS) reported higher profit for the first quarter as revenue showed growth. Nicor is a holding company which serves 2.2 million customers in most of the northern third of Illinois.

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AGL Resources Earnings Cheat Sheet for the First Quarter

Results: Net income for AGL Resources Inc. rose to $130 million ($1.11 per share) vs. $124 million ($1.59 per share) in the same quarter a year earlier. This marks a rise of 4.8% from the year-earlier quarter.

Revenue: Rose 59.9% to $1.4 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: AGL Resources Inc. fell short of the mean analyst estimate of $1.32 per share. It beat the average revenue estimate of $886 million.

Quoting Management: “The unprecedented weather conditions during the first quarter of the year clearly impacted our earnings, particularly at Nicor Gas and our retail operations in Georgia. However, weather normalization programs and decoupling at our other major utilities helped to stabilize our performance. While our wholesale business also experienced negative impacts from warmer than normal weather, our transportation positions were well-hedged and our storage positions look strong, with seasonal spreads improving.” said John W. Somerhalder II, AGL Resources Chairman, President and Chief Executive Officer.

Key Stats:

For two quarters in a row, the company has come in under analyst estimates. In the fourth quarter of the last fiscal year, it missed expectations by 5 cents with net income of 87 cents versus a mean estimate of net income of 92 cents per share.

The company’s revenue has now risen for two quarters in a row. In the fourth quarter of the last fiscal year, revenue increased 18.8% to $790 million from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 37 cents a share to 31 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $3.05 a share to $2.84 over the last ninety days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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