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Allegheny Tops Zacks View

Allegheny Energy's fourth-quarter earnings per share of 66 cents beat the Zacks Consensus Estimate of 51 cents. The upbeat trend was reflected in fiscal 2009 results as well, where EPS of , Elsa Peretti ETERNAL CIRCLE earrings, $2.33 surpassed the average forecast of $2.17 and fiscal 2008's $2.30 per share.

Two out of the 12 covering analysts have pulled back on projections in the last 30 days for fiscal 2010. Allegheny Energy’s upsurge in earnings has yet to be reflected in the Zacks Consensus Estimate of $2.24 for fiscal 2010.

Allegheny Energy’s operating revenues of $861.1 million in the reported quarter rose by $153.3 million year over year. This was due , Elsa Peretti Teardrop ring, to higher generation rates in Pennsylvania, power hedges, increased capacity revenue and sales to third parties, higher cost recovery in Virginia and increased revenue from transmission expansion. These benefits were partially offset by reduced generation output and lower power prices.

Allegheny Energy’s retail volume sales declined 5.9% year over year. This was mainly due to 11.1% lower volume sales to industrial customers. Regulated generation slumped 56% year over year, while merchant generation decreased 21.5%.

In the Merchant , Elsa Peretti tag pendant, Generation segment, Allegheny Energy’s adjusted net income in the reported quarter increased by $9.9 million to $77.7 million. This was due to lower fuel costs, power hedges, capacity revenue, the purchase of hydro generation facilities and the Pennsylvania tax law change. These factors were partially offset by decreased generation volume, low power prices, the elimination of an inter-company transfer payment and higher depreciation and interest , Elsa Peretti Open Heart bangle, expense.

In the Regulated Operations segment, Allegheny Energy’s adjusted net income in the reported quarter rose by $15.7 million to $34.8 million. The upsurge came from increased cost recovery in Virginia, the elimination of an inter-company transfer payment and , Elsa Peretti charm bracelet, higher income from transmission expansion. This was partially offset by lower revenues from retail sales and higher income taxes due to an increase in pre-tax income.

Allegheny Energy reported cash and cash equivalents at the end of fiscal 2009 of $286.6 million, while long-term debt amounted to $4.4 billion.