NorthWestern Q1 Profit Falls, Cuts Top-End Of Full Year EPS Forecast

NorthWestern Corp NEW announced 25.88 percent drop in net income for the first quarter to $38.1 million from $51.4 million. Its earnings also fell 27.5 percent to $0.790 a share from $1.09 a share in the previous year quarter. The company blamed the drop in profit to recent regulatory decisions, a reduction to natural gas production bridge rates and disallowance of replacement power costs.

Excluding any items, NorthWestern would have earned $1.01 a share for the quarter, which was lower than $1018 a share in the year-ago quarter. Street analysts' estimated the company to earn $1.12 a share.

The company's revenue fell 3.9 percent to $332.54 million from $346.11 million in the previous year quarter. This was also lower than the Street predictions of $377.39 million.

President and CEO Bob Rowe said, "While we delivered another quarter of safe and reliable utility operations for our customers, we also experienced significant earnings headwinds and fell short of our, and our investors earnings expectations. The cumulative financial impact of several disappointing regulatory decisions in Montana is very apparent this quarter. We respectfully but strongly disagree with these recent decisions. We affirm our commitment to providing essential energy services, while striking a balance that is equitable for both our valued customers and the investors who provide the capital to invest in, operate, and maintain the electric and gas systems that serve our customers."

He continued, "As a result of the impact of these regulatory decisions on company revenues, we are significantly reducing our expenditures in 2016 to ensure we can maintain our financial strength, including sound credit ratings, and be able to meet our long-term commitments to the customers and communities we serve. We won't compromise the safety and integrity of service to our customers."

Moving ahead, NorthWestern slashed the top end of its full-year earnings outlook to $3.20-$3.35 a share from the earlier forecast of $3.20-$3.40 a share. Analysts expect the company to earn $3.32 a share.

Shares of the company shed 0.33 percent on Tuesday.