Boston, MA 05/09/2014 (wallstreetpr) – PNM Resources Inc (NYSE:PNM) recently reported 1Q results that exceeded the performance in the same quarter a year ago. However, the company faced challenges in some markets that it expects to address in the balance of the year.
However, there is a key development around the company that comes as a meaningful statement to the company and its shareholders. The company recently had its credit rating raised by the Standard and Poor’s. The financial services company now rates PNM and its utilities like positive, up from a stable.
The development has a significant impact on the company’s efforts to secure financing for its projects especially in the light of planned overhaul of PNM Resources Inc (NYSE:PNM)’s coal-fired energy plant the company intends to make compliant with the new federal regulatory requirements.
The favorable credit rating of the company by S&P comes hot on the heels Moody’s Investor Service rating adjustment that elevated the company to an investment grade.
PNM Resources Inc (NYSE:PNM) hopes that a favorable credit ratings earned from Moody’s and S&P will play an important role in allowing it access to credit on more favorable terms that will in turn help in keeping down the cost of overhauling its coal-fired power plant. In keeping down the cost of the project, the company can make savings that can be reinvested in other promising projects or returned to the shareholders in the form of stock repurchase or dividend hike.
Efficiency in the name of business
PNM Resources Inc (NYSE:PNM) has many positive things to show for its efficient operations. And the company expects to maintain this efficiency to support the creation of a bigger value for the shareholders. The latest quarterly results came in strongly partly because of the efficiency that is taking roots in the company’s operations.
2014 guidance remain intact
PNM Resources Inc (NYSE:PNM) reported a profit of $12.5 million or 16 cents per share in 1Q2014. That compared with 1Q2013 profit of $10.6 million or 13 cents per share.
It reaffirmed its fiscal 2014 earnings guidance between $1.42 and $1.52 per share.
