Back to top

Analyst Blog

PNM Resources, Inc. (PNM - Snapshot Report) posted fourth-quarter 2013 ongoing earnings of 21 cents per share, surpassing the Zacks Consensus Estimate of 18 cents by 16.7%. Reported earnings were also up 61.5% from 13 cents a year ago.

Quarterly GAAP earnings were 10 cents per share, down from the prior-year figure of 11 cents per share.

For 2013, PNM Resources’ ongoing earnings jumped 7.6% year over year to $1.41 per share.

On a GAAP basis, the company’s earnings were $1.25 per share compared with $1.31 per share a year ago. The variance between GAAP and ongoing earnings were primarily due to the combined impact of the New Mexico corporate income tax rate change, mark-to-market effect of economic hedges, loss on reacquired debt, state tax credit impairment and regulatory disallowance.

Operational Results

In fourth-quarter 2013, PNM Resources’ total operating revenues of $322.9 million beat the Zacks Consensus Estimate by 10.2%. Quarterly revenues were marginally higher than the year-ago figure of $322.7 million.

The company’s annual total operating revenues were $1,387.9 million, up 3.4% year over year. The improved performance was primarily due to a year over-year rise of 2.2% and 8.6% at the company’s Public Service Company of New Mexico and Subsidiaries (“PNM”) and Texas-New Mexico Power Company and Subsidiaries (“TNMP”) segments’ revenues, respectively.

In 2013, total operating expenses increased around 3% year over year to $1,101.1 million primarily due to increases in cost of energy, depreciation expenses, and taxes (other than income taxes).

The company’s annual operating income edged up 4.8% year over year to $286.8 million.

PNM Resources’ interest charges were $121.4 million in 2013 compared with $120.8 million a year ago.

Financial Condition

As of Dec 31, 2013, PNM Resources reported cash and cash equivalents of $2.5 million, down from $9.0 million as of Dec 31, 2012.

Long-term debt was $1,670.4 million as of Dec 31, 2013, up from $1,669.8 million at the end of Dec 31, 2012.

For 2013, the company’s net cash provided by operating activities was $260.5 million, lower than $268.4 million in the year-ago comparable period.


PNM Resources reiterated its 2014 ongoing earnings guidance in the range of $1.42 - $1.52 per share.

The company provided its total capital plan of $2.2 billion within a time span of 2014 - 2018.

Peer Comparison

American Electric Power Company Inc. (AEP - Analyst Report) reported fourth quarter 2013 operating earnings of 60 cents per share, beating the Zacks Consensus Estimate of 56 cents by 7.1%.

Zacks Rank

PNM Resources currently has a Zacks Rank #2 (Buy). Some other stocks worth considering in the utilities industry include Public Service Enterprise Group Inc. (PEG - Analyst Report) and Avista Corporation (AVA - Snapshot Report). While Public Service Enterprise holds a Zacks Rank #1 (Strong Buy), Avista Corporation carries a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 3.69 +3.94%
WEATHERFORD… WFT 23.81 +3.88%
BANCO DO BR… BDORY 14.45 +3.58%
AIR INDUSTR… AIRI 9.89 +3.13%
EQT MIDSTRE… EQM 97.67 +2.89%