TECO (TE) Q1 Earnings Beat Estimates, Revenues Lag Y/Y

Tampa, FL based TECO Energy Inc., (NYSE:TE) operates its regulated electricity and gas operations through its three divisions Tampa Electric, Peoples Gas System (PGS) and New Mexico Gas Company (NMGC).

Tampa Electric serves more than 725,000 customers in West Central Florida; Peoples Gas System serves around 365,000 customers across Florida; and New Mexico Gas Co. serves more than 515,000 customers across New Mexico.

Taking into consideration the ongoing softness in coal demand, TECO Energy has decided to exit the coal business. During 2015, the company closed the sale of its coal mining subsidiary, TECO Coal LLC, to Cambrian Coal Corporation, a Booth Energy company.

Estimate Trend & Surprise History

Investors should note that the first quarter Zacks Consensus Estimate for earnings of 28 cents per share went up by 7.7% over the last 90 days.

Coming to the earnings surprise, TECO Energy has meet the Zacks Consensus Estimate in the last four quarters, resulting in a average surprise of 0.00%.

Zacks Rank: Currently, TECO Energy has a Zacks Rank#3 (Hold) but that could change following its first quarter 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:

Earnings: TECO Energy’s earnings were ahead of the earnings estimate. Adjusted earnings per share came in at 31 cents, beating the Zacks Consensus Estimate of 28 cents by 10.7%.

Revenue: First quarter total revenues of $659.5 million were down 4.8% year over year.

Key Stats: Ongoing improvement in economic conditions of Florida has aided Tampa Electric to increase its average customers by 1.7% year-over-year in first quarter, while People Gas increased its average customers by 2.4% year over year.

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

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

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 >>

TECO ENERGY (TE): Free Stock Analysis Report

Original post

Zacks Investment Research