(LG) - Laclede Group - fourth time in the last four quarters that the company has surprised and beaten estimates by 87% on average
Laclede Group, Inc. (LG) just posted a new 52-week and all-time high, as the company continues to benefit from higher energy prices. Analyst estimates have continued to rise over the last several months.
Company Description
The Laclede Group, Inc. is a utility holding company that engages in the retail distribution and sale of natural gas in Eastern Missouri. The company was founded in 1857, has a market cap of $1.09 billion and is headquartered in St. Louis, Missouri.
Second Quarter Results
Laclede Group’s share price has been rallying for most of 2008, having received a boost from the company’s solid second-quarter results, reported on Aug 1.
Net income totaled $9.3 million, producing earnings of 42 cents per share, far ahead of analyst estimates of 16 cents per share.
Consistent Results
It was the fourth time in the last four quarters that the company has surprised and beaten estimates, having done so by an average of 24 cents, or 87%.
In spite of the fact that the results were ahead of analyst estimates, the company said its results were hurt by higher operating costs and bad debt expenses.
Operational Results
Operating revenue for the quarter jumped to $505.5 million from $421.3 million in the same period last year. The company’s core subsidiary, Laclede Gas Co. grew its earnings to $5.5 million from $4.7 million last year.
Analyst Estimates
Analyst estimates have continued to creep higher over the last few months, with the current-year estimate advancing to $2.45 per share from $2.26 per share.
Based upon the current-year estimate, this stock is trading at a premium to the overall market, with a forward P/E multiple of 20X.
The Chart
Shares of LG have had an impressive run in 2008, advancing from just over $35 to a recent high above $52, a new 52-week and all-time high. Moving forward, this company will need to continue to produce robust earnings in order to support the higher P/E multiple.
Content Courtesy: Zacks Investment Research
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