WGL Holdings Sees Revenue Rise and Income Fall in 4Q15
WGL Holdings’ Fiscal 4Q15 Earnings Results Are Mixed
WGL’s price movement
WGL Holdings (WGL) has a market capitalization of $2.9 billion. WGL’s YTD (year-to-date) price movement was a mix of rises and falls in 2015.
After its fiscal 4Q15 earnings report, WGL fell by 1.5% to close at $58.32 per share as of November 13, 2015. The stock’s price movements on a weekly, monthly, and YTD basis are -0.82%, -3.4%, and 10.3%, respectively.
Technically, WGL’s stock has broken the support of its 20-day and 50-day moving averages throughout 2015. Currently, it’s trading at -4.6% below its 20-day moving average, 0.63% above its 50-day moving average, and 5.5% below its 200-day moving average.
The PowerShares DWA Utilities Momentum ETF (PUI) invests 2.0% of its holdings in WGL. The ETF tracks an index of US utility companies selected and weighted by price momentum. The YTD price movement of PUI is -6.3% as of November 12, 2015. The SPDR S&P Dividend ETF (SDY) invests 0.77% of its holdings in WGL.
The competitors of WGL Holdings and their market capitalizations are as follows:
FirstEnergy (FE) — $13.0 billion
Pepco Holdings (POM) — $6.7 billion
Atmos Energy (ATO) — $6.1 billion
NiSource (NI) — $6.1 billion
Performance of WGL Holdings in fiscal 4Q15 and fiscal 2015
WGL projected an operating revenue of $467.7 million in fiscal 4Q15, a rise of 1.9% when compared to its operating revenue of $458.9 million in 4Q14.
The company’s revenue from gas sold and delivered to Residential (firm) and Commercial and Industrial (firm) areas fell by 7.9% and 8.7%, respectively, and its revenue from gas sold and delivered to Commercial and Industrial (interruptible) areas rose by 9.6% in 4Q15 as compared to the revenue in 4Q14.
WGL’s therm and electricity sales rose by 3.3% and 16.1%, respectively, in 4Q15 as compared to sales in 4Q14. Its operating expense as a percentage of operating revenue rose by 15.5% in 4Q15 as compared to the same in 4Q14.
The company’s net income and EPS (earnings per share) fell to $1.9 million and $0.03, respectively, in 4Q15 compared to net income and EPS of $38.4 million and $0.74, respectively, in 4Q14.
WGL declared a regular quarterly dividend of $0.46 per share on its common stock.
Washington Gas Light Company, a subsidiary of WGL Holdings, declared regular dividends on its preferred stock as listed below:
a dividend of $1.06 per share on $4.25 Series
a dividend of $1.20 per share on $4.80 Series
a dividend of $1.25 per share on $5.00 Series
In fiscal 2015, the company’s operating revenue fell to $2,659.8 million, a fall of 4.4% on a yearly basis. Operating revenue of its Utility and Non-Utility segments fell by 8.0% and 0.52%, respectively, in fiscal 2015.
WGL’s therm sales fell by 0.71% and electricity sales rose by 3.1% in fiscal 2015. Its operating income rose by 32.1% in fiscal 2015 on a yearly basis. Its net income and EPS rose to $132.6 million and $2.62 in fiscal 2015 compared to net income and EPS of $107.3 million and $2.05 per share in fiscal 2014.
Meanwhile, the company’s accounts receivable rose by 19.9% and its storage gas fell by 36.6% in fiscal 2015. Its current ratio fell to 0.79 and its long-term debt-to-equity ratio rose to 0.75 in fiscal 2015 compared to its current and long-term debt-to-equity ratios of 0.81 and 0.54, respectively, in fiscal 2014.
The company has projected non-GAAP EPS in the range of $3.00–$3.20 per share for fiscal 2016.
About WGL Holdings
WGL Holdings is an energy company. It provides natural gas, electricity, green power, carbon reduction, and energy services.
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