Northwestern Corporation (NWE - Free Report) announced second-quarter 2016 adjusted earnings of 65 cents per share, beating the Zacks Consensus Estimate of 56 cents by 16.1%. On a year-over-year basis too, earnings surged nearly 35.4%, backed by higher revenues and lower income tax expense.
Total Revenue
In the second quarter, Northwestern Corporation’s operating revenues were $293 million, up nearly 8.1% from $271 million a year ago.
Operational Update
During the quarter under review, Northwestern Corporation’s total operating expenses increased 13.7% year over year to $147.7 million due to higher property and other taxes, and depreciation and depletion expenses.
Operating income grew nearly 4.3% to $63.7 million from $61.1 million a year ago.
Interest expenses were $26.4million, up around 15.3% from $22.9 million in the prior-year quarter on account of higher long-term debt.
Financial Update
Northwestern Corporation had cash and cash equivalents of $9 million as of Jun 30, 2016, compared with $11.9 million as of Dec 31, 2015.
Long-term debts as of Jun 30, 2016 were $1,774 million, up from $1,768 million as of Dec 31, 2015.
Cash flow from operating activities was $141 million, compared with $190 million in the year-ago period.
Guidance
Northwestern Corporation reiterated its earnings guidance in the range of $3.20–$3.35 per share for 2016, depending on normal weather conditions in its service territories, an effective income tax rate of nearly 6–10% on pre-tax income and outstanding diluted average shares of approximately 48.6 million.
Upcoming Peer Releases
DTE Energy Company (DTE - Free Report) is scheduled to report second-quarter 2016 earnings on Jul 26. The Zacks Consensus Estimate stands at 90 cents.
NiSource Inc. (NI - Free Report) is slated to report second-quarter 2016 earnings on Aug 2. The Zacks Consensus Estimate stands at 6 cents.
PG&E Corporation (PCG - Free Report) scheduled to report second-quarter 2016 earnings on Jul 28. The Zacks Consensus Estimate stands at 94 cents.
Zacks Rank
Currently, Northwestern Corporation carries a Zacks Rank #4 (Sell).
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Northwestern Corporation (NWE - Free Report) announced second-quarter 2016 adjusted earnings of 65 cents per share, beating the Zacks Consensus Estimate of 56 cents by 16.1%. On a year-over-year basis too, earnings surged nearly 35.4%, backed by higher revenues and lower income tax expense.
Total Revenue
In the second quarter, Northwestern Corporation’s operating revenues were $293 million, up nearly 8.1% from $271 million a year ago.
Operational Update
During the quarter under review, Northwestern Corporation’s total operating expenses increased 13.7% year over year to $147.7 million due to higher property and other taxes, and depreciation and depletion expenses.
Operating income grew nearly 4.3% to $63.7 million from $61.1 million a year ago.
Interest expenses were $26.4million, up around 15.3% from $22.9 million in the prior-year quarter on account of higher long-term debt.
Financial Update
Northwestern Corporation had cash and cash equivalents of $9 million as of Jun 30, 2016, compared with $11.9 million as of Dec 31, 2015.
Long-term debts as of Jun 30, 2016 were $1,774 million, up from $1,768 million as of Dec 31, 2015.
Cash flow from operating activities was $141 million, compared with $190 million in the year-ago period.
Guidance
Northwestern Corporation reiterated its earnings guidance in the range of $3.20–$3.35 per share for 2016, depending on normal weather conditions in its service territories, an effective income tax rate of nearly 6–10% on pre-tax income and outstanding diluted average shares of approximately 48.6 million.
Upcoming Peer Releases
DTE Energy Company (DTE - Free Report) is scheduled to report second-quarter 2016 earnings on Jul 26. The Zacks Consensus Estimate stands at 90 cents.
NiSource Inc. (NI - Free Report) is slated to report second-quarter 2016 earnings on Aug 2. The Zacks Consensus Estimate stands at 6 cents.
PG&E Corporation (PCG - Free Report) scheduled to report second-quarter 2016 earnings on Jul 28. The Zacks Consensus Estimate stands at 94 cents.
Zacks Rank
Currently, Northwestern Corporation carries a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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