(ITC) ITC Holdings Corp – consensus estimate for 2008 is currently 25% higher than 2007

November 18th, 2008

ITC Holdings Corp. (ITC) reported great third-quarter results. The company continues to expand and estimates are climbing.

Company Description

ITC Holding Corp. is involved in several areas of electricity infrastructure. The company’s over all goal is to reduce the costs, for the end user, of delivering energy through improved infrastructure and reducing congestions. ITC is the largest independent electric transmission company.

The Michigan-based company has just over 300 employees and a market cap of $2.2 billion.

Solid Earnings, Raised Guidance

On Nov 5 ITC announced its fourth earnings surprise in the past year. Reported earnings per share were 56 cents, 27% higher than the consensus estimate of 44 cents.

The company also increased its full-year earnings guidance to between $2.10 and $2.12, up from between $2.00 and $2.05.

President and CEO, Joseph L. Welch sited the acquisition of Interstate Power and Light Company as the main driver for the impressive quarterly results.

Expansion Into Oklahoma

An ITC subsidiary, ITC Great Plains, was granted utility status in Oklahoma on Sept 11. The company also received approval in Kansas in 2007. Now ITC will be allowed to construct, own, operate, and maintain electric transmission lines.

Growth at a Discount

The consensus estimate for 2008 is currently $2.11, up from $1.97 with in the past month and 25% higher than 2007.

Using a 17% 5-year growth rate, shares are trading with a PEG ratio of 1.2, a discount compared to the industry average of 2.0.

The Chart

After breaking through a key support level during the early October sell off, ITC set a new 52-week low of $32.35. The stock is still a value after surging following the latest earnings announcement. Take a look at the chart below.

Content Courtesy: Zacks Investment Research

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More on this topic (What's this?)
ITC Holdings Corp (ITC) to Build "Green Power Express" (Green Stocks Central, 2/12/09)
New ITC Project Will Move 12,000 MW (Green Chip Stocks, 2/11/09)
Another 1,300 MW Of Solar In California (Green Chip Stocks, 2/12/09)
ITC Holdings Corp. Earnings Estimate $ITC (Robert Weinstein Trading Blog, 10/24/11)
Read more on ITC Holdings at Wikinvest

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