WASHINGTON (AP) -- Utility operator Pepco Holdings Inc. said Friday that its first-quarter profit rose 6 percent as lower taxes helped offset a 21 percent drop in revenue, as mild winter weather led to a decline in electric sales.
Pepco reaffirmed its forecast for 2012 earnings between $1.15 and $1.30 per share, which "assumes normal weather conditions" and excludes special items. Analysts were forecasting $1.22 per share.
First-quarter net income was $68 million, or 30 cents per share, compared with $64 million, or 28 cents per share, a year earlier.
Analysts, on average, expected 25 cents per share, according to data provider FactSet.
Revenue dropped to $1.29 billion from $1.63 billion a year ago.
The company's income tax expense for continuing operations fell to $14 million from $34 million a year ago.
The shares rose 29 cents to close the week at $18.90 despite big market declines. In the past year, they have ranged from a low of $16.57 last August to $20.64 on the last trading day of December.