Vectren Corp.

Vectren Corp.'s (VVC - Snapshot Report) share price has been rallying since early October, helped by the company's strong third-quarter results reported at the end of the month. Analysts are bullish on Vectren, with the next-year estimate projecting 23% earnings growth.

Company Description

Vectren Corp., through its subsidiaries, provides energy delivery services to residential and commercial customers in Indiana and Ohio, specializing in natural gas and electricity. Approximately 75% of Vectren's earnings mix is derived from utility operations with the other 25% from non-regulated businesses. The company was founded in 1990 and has a market cap of $4 billion.

Third-Quarter Results

Vectren pleased shareholders on Oct 30 when the company reported excellent third-quarter results comprising its two business segments.

Income from the utility group came in at $13.6 million, or 17 cents per share, up from last year's $10.7 million, or 14 cents per share.

Income from Vectren's non utility group was $9.8 million, or 12 cents a share, up from $3.1 million, or 4 cents last year.

Consolidated Results

Consolidated earnings totaled 29 cents per share, far ahead of analyst estimates of 18 cents.

Liquidity

With the credit markets locked in a deep freeze, many companies are struggling to satisfy short-term obligations. Vectren is in the favorable positions of carrying access to its credit facilities, totaling $905 million at the end of September.

Guidance and Estimates

During the report, Vectren confirmed its 2008 earnings guidance between $1.60 and $1.75 per share. The analysts are bullish on the company, with the next-year estimate pegged at $2.09 per share, a 23% earnings growth projection.

The Chart

Shares of VVC have been rallying since early October, helped by the company's strong third-quarter results, reported on Oct 30. Shares recently topped off over $29, fast approaching the 52-week and all-time high just above $32. Take a look below.

Read the full analyst report on VVC