Northwestern Corp.

Northwestern Corp. (NWE - Snapshot Report) has been on the move since mid December, climbing from just above $17 to a recent high above $23. Analysts are bullish on the company, with the next-year estimate projecting 11% earnings growth.

Company Description

Northwestern Corp., together with its subsidiaries, provides electricity and natural gas in Montana, South Dakota and Nebraska. The company was founded in 1923 and has a market cap of $852 million.

Third-Quarter Results

On Oct 30, NorthWestern reported third quarter results that were ahead of analyst estimates. Net income rose 1.5% to $13.4 million, or 35 cents per share, from $13.2 million, or 35 cents per share, in the third quarter 2007. Analysts were expecting 29 cents.

Gross margin on regulated electric rose 2.7% in the third quarter to $94.7 million from $92.2 million in 2007, mainly due to a rate increase.

Analyst Estimates

Since the solid quarter, analyst estimate have ticked higher. The current-year estimate is up 4 cents in the last 60 days to $1.81 per share. The next-year estimate is bullish, pegged at $2.00, an 11% earnings growth projection.

Valuations

Baaed upon the current-year estimate this stock has a forward P/E multiple of 13X, in range with the overall market.

The Chart

As previously mentioned, shares of NWE have been rallying since November of last year, recently setting a new 52-week and all-time high. Some short-term resistance has developed in this area, take a look at the chart below.