Boston, MA 05/01/2014 (wallstreetpr) – Northeast Utilities System (NYSE:NU) is a $15 billion energy holding company. The company reports its Q12014 today, following months of high demand for energy, thanks to the winter weather. In the eyes of Wall Street, the company is likely to post positive results in the looming report. However, optimism in the company has changed to the negative over the past month with consensus earnings estimate taking a dip.
Nonetheless, many analysts still hold positive recommendations for the stock and they believe that regardless of what comes out of the upcoming financial report, investors with a long-term outlook are better served in the company.
Earnings preview
The consensus earnings estimate for Q12014 is 75 cents per share. That signals a drop from a consensus estimate of 76 cents per share in the past one month. Still, the current consensus estimate signals improvement from the estimate of 74 cents in the past three months.
Wall Street expects the company to report revenue of $1.96 billion, down 2 percent from revenue of $2 billion in Q12013.
For the full-year 2014, Wall Street estimates earnings per share of $2.70 and revenue of $7.32 billion.
Performance track record
Efficiency and revenue expansion remain important goals in the company. Revenue in the fourth quarter dropped ending a streak of growth in top-line that lasted three consecutive quarters.
Earnings in the past four or so quarters have held up nicely, going up by an average of 99 percent on a year-over-year basis. The company noted the biggest jump in earnings in Q22013 during which earnings jumped more than threefold.
Still waiting for the promising
Northeast Utilities System (NYSE:NU) paid $20 billion to merge with NSTAR in April 2012. However, two years down the line, the company is still looking for “one company” that it intended to create out of the merger. Balancing costs and integrating operations remain some of the unsettled issues.
Northeast Utilities System (NYSE:NU) is rated “buy” at 73 percent by a majority of analysts tracking the stock. That is favorable compared with 41 percent “buy” rating for nine other similar companies.
