UPDATE: Pepco Posts Q1 Profit

Pepco Holdings

posted a profit in the first quarter. Pepco swung to a quarterly profit of $75 million, or $0.30 per share, versus a year-ago loss of $430 million, or $1.82 per share. Its total operating revenue surged 13% to $1.33 billion. However, analysts were expecting earnings of $0.24 per share on revenue of $1.06 billion. Pepco's power-delivery segment revenue climbed 13% to $1.27 billion, while the Pepco Energy Services unit's revenue jumped to $60 million versus $56 million. Pepco reaffirmed its earnings outlook for the full year. Joseph M. Rigby, Chairman, President and Chief Executive Officer said, “Last week we announced plans to merge with Exelon, with the goal of creating a stronger combined company that is better positioned to deliver value to our customers.” The executive added, “As we move forward with the approval process, we remain focused on continued improvement in reliability and customer satisfaction through ongoing investment in our infrastructure. The significant investments we have made in the electric system have resulted in a more resilient electric grid and the increase in earnings in the first quarter of 2014 reflects the impact of these investments.” Pepco shares gained 0.59% to close at $27.30 yesterday.