Colorado’s largest utility, Xcel Energy, said Thursday that its first-quarter earnings were up 14 percent compared with the same period last year, beating forecasts.
The Minneapolis-based company reported earnings of $174 million, or 38 cents per share, compared with $153 million, or 35 cents per share, in the first quarter of 2008.
Total operating revenue fell 11 percent to $2.7 billion. Analysts polled by Thomson Reuters on average predicted earnings per share of 36 cents.
In addition, Xcel reaffirmed its 2009 earnings guidance of $1.45 to $1.55 per share.
Higher earnings in the first quarter were primarily because of better financial performance at Southwestern Public Service Co., interim electric rates in Minnesota and improved fuel- cost recovery in Wisconsin, Xcel said.
Xcel expects power sales to fall 1 percent this year after weather-adjusted first-quarter sales were “below expectations,” Xcel chief financial officer Benjamin Fowke said in a conference call Thursday with analysts and investors. The company had said electricity sales would be unchanged. Gas sales are also expected to decline 1 percent.
“It is no surprise that electric sales are struggling during a recession like this,” said Paul Franzen, an analyst at Edward Jones & Co. in Des Peres, Mo., who has a “hold” rating on the shares and doesn’t own them.
The Associated Press contributed to this report.
Gargi Chakrabarty: 303-954-2976 or gchakrabarty@denverpost.com
