Brazilian electric utility, Companhia Energetica de Minas Gerais (CIG - Free Report) is slated to release its third quarter 2012 results on Wednesday, November 14. The current Zacks Consensus Estimate for earnings per share (EPS) is US$1.54 per ADR, roughly flat over the year-ago quarter.
Second Quarter Recap
Companhia Energetica de Minas Gerais reported quite an impressive second quarter 2012 financial results on August 14. Net income in the quarter was R$604.2 million (US$308.3 million), up 15% year over year. Earnings per ADR came in at US$0.42 per ADR.
Net revenue increased 16% to R$4,413.9 million (US$2,251.9 million), despite a 0.17% dip in electricity sold to 16,907 GWh at the end of the quarter.
For further details follow the link: Net Income Rises at CEMIG
Agreement/Magnitude of Estimate Revisions
In the last 30 days, an upward revision in one of the total three estimates pushed the Zacks Consensus Estimate up by 0.4% to US$2.57 per ADR for year 2012 while there was an increase in estimate for year 2013 by 11.5% to US$1.46 per ADR.
Results in the third quarter 2012 are expected to improve on a sequential as well as on a year-over-year basis. Demand for electricity seems to be on the rise as Brazil prepares to host two major sporting events in the coming years. Also, the Government seems keen to invest heavily in infrastructure and power generation capabilities.
Cemig, the fifth largest electricity generator in Brazil, generates approximately 97% of electricity from hydroelectric sources. The company competes with Companhia Paranaense de Energia , which is expected to release its third quarter financial results on November 13. The Zacks Consensus Estimate for the quarter stands at US$0.48 per ADR.