By Everdeen Mason
Utilities operator PNM Resources Inc. /zigman2/quotes/202534367/composite PNM +0.04% said its fourth-quarter earnings fell 16% as its New Mexico utility business posted a significant drop in revenue.
PNM, which operates utilities in the Southwest, has reported mixed results in recent quarters. The company also almost entirely exited from the merchant-generator business when it sold its First Choice Power and Optim Energy holdings in late 2011. Merchant generators that compete for business have been hurt by low prices, largely as a result of falling natural-gas prices.
PNM Resources reported earnings of $7.6 million, or 10 a share, up from $9.1 million, or 11 cents a share, a year earlier. Excluding hedging impacts and other items, ongoing earnings were up at 21 cents from 13 cents.
Analysts polled by Thomson Reuters most recently projected adjusted earnings of 18 cents.
Its New Mexico utility reported earnings tumbled 57% to $2.5 million as a decrease in load and a contribution to the PNM Resources Foundation offset a reduction in power plant outages, cost control and the benefit from weather.
Its regulated Texas utility's earnings increased 4.3% to $6.9 million on a boost in rate relief revenue, continued strong load growth and weather.
Shares of PNM, which backed its full year outlook, closed Thursday at $25.58 and were inactive premarket. The stock is up 14% in the past 12 months.
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