By Ben Fox
PNM Resources Inc.'s /zigman2/quotes/202534367/composite PNM -0.12% second-quarter profit rose 29% as both of the utility operator's major units posted improved results.
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 a profit of $27.7 million, or 34 cents a share, up from $21.5 million, or 27 cents a share, a year earlier. Excluding hedging impact and other items, ongoing earnings were up at 38 cents from 33 cents.
Analysts polled by Thomson Reuters most recently projected adjusted earnings of 33 cents.
Its New Mexico utility reported ongoing earnings rose 13% to $24.3 million, as the unit benefited from realized gains on investments related to the Palo Verde Nuclear Decommissioning Trust, higher prices for the sale of Palo Verde Unit 3 generation, and increased rates from a renewable energy rider. Its regulated Texas utility's ongoing earnings grew 2.5% to $8.3 million thanks to additional revenue from rate relief, partially offset by weather, higher depreciation and property tax expenses.
Shares of PNM Resources, which affirmed its 2013 earnings outlook, closed Thursday at $23.76 and were inactive premarket. The stock is up 16% so far this year.
Write to Ben Fox Rubin at email@example.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires