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Pepco Holdings (POM) Tops on Q4 Earnings, Revenue lags

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Based in Washington, District of Columbia (DC), Pepco Holdings Inc. (POM) engages in both regulated utility and unregulated businesses. Pepco Holdings Inc., also referred to as PHI, is one of the largest energy delivery companies in the Mid-Atlantic region, delivering power to 2 million customers in Delaware, the District of Columbia, Maryland and New Jersey. It also supplies natural gas to customers in Delaware.


Pepco Holdings primarily identifies three operating segments which contribute to its revenue and earnings, namely, Power Delivery, Pepco Energy Services and Other Non-Regulated (Corporate & Other).


Pepco Holdings is getting merged with Exelon Corporation (EXC), and the merger is expected to be completed in the second or third quarter of 2015 subject to approval from some regulatory commissions.


Estimate Trend & Surprise History


Investors should note that the fourth quarter Zacks Consensus Estimate for earnings of 18 cents per share has remained same over the last 90 days.


Coming to the earnings surprise, Pepco Holdings Inc. has surpassed the Zacks Consensus Estimate in the last four quarters, resulting in a positive average surprise of 14.13%.


Zacks Rank: Currently, Pepco Holdings has a Zacks Rank#3 (Hold) but that could change following its fourth quarter 2014 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:


Earnings: Pepco Holdings beat on earnings. Adjusted earnings per share came in at 23 cents, beating the Zacks Consensus Estimate of 18 cents.


Revenue: Revenues of $1,118 million missed the Zacks Consensus Estimate of $1,444 million by 22.6% but increased 2.5% year over year.


Key Stats: In 2014, Pepco Holdings’ total regulated Transmission and Distribution (T&D) electric customer count increased by nearly 1% year over year to 1,871,000.


Stock Price: It would be interesting to see how the market reacts to the fourth quarter earnings beat during the trading session today.


Check back later for our full write up on this POM earnings report later!

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