Vectren Corp. (VVC) Tops Q3 EPS by 9c, Beats on Revenues; Reaffirms FY17 EPS Guidance

Vectren Corp. (NYSE: VVC) reported Q3 EPS of $0.75, $0.09 better than the analyst estimate of $0.66. Revenue for the quarter came in at $691.2 million versus the consensus estimate of $639.03 million.

2017 earnings guidance affirmed

The company affirms its 2017 consolidated earnings guidance range of $2.55 to $2.65 per share. The 2017 consolidated earnings guidance expectation includes Utility Group earnings within a range of $2.10 to $2.15 per share and the Nonutility Group/Corporate and Other earnings within a range of $0.45 to $0.50 per share.

Guidance ranges are based on assumptions and information currently available, but changes in these assumptions or other circumstances could materially impact earnings and result in 2017 earnings significantly above or below this guidance. These targeted ranges are subject to such factors discussed below under "Forward-Looking Statements".

Highlights of results; 7.1 percent dividend increase

• Utility Group earnings were $30.8 million, or $0.37 per share, in the third quarter of 2017, compared to $34.9 million, or $0.42 per share, in 2016. For the year-to-date period, net income for the Utility Group was $122.2 million, or $1.47 per share, compared to earnings of $122.3 million, or $1.48 per share in 2016. Utility Group results for the quarter and year-to-date reflect continued investment in the gas infrastructure programs in both Indiana and Ohio. Results also reflect the expected decrease in usage of a large electric customer that completed its transition to a co-generation facility and lower electric margins as cooling degree days in 2017 were lower compared to 2016.
• Nonutility Group earnings were $31.3 million, or $0.38 per share, in the third quarter of 2017, compared to $24.3 million, or $0.29 per share, in the third quarter of 2016. For the year-to-date period, nonutility results were earnings of $33.0 million, or $0.40 per share, compared to $18.2 million, or $0.22 per share, in 2016. Results improved in both the quarter and year-to-date periods due to strong performance at Infrastructure Services, reflecting large pipeline projects in 2017 as compared to 2016.

GUIDANCE:

Vectren Corp. sees FY2017 EPS of $2.55-$2.65, versus the consensus of $2.63.

For earnings history and earnings-related data on Vectren Corp. (VVC) click here.

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