NSTAR posts good earnings

Massachusetts energy company NSTAR (NYSE: NST) recently reported solid earnings for 1Q 2007. NSTAR has received widespread recognition for its innovative programs to help customers become aware of and reduce their energy usage through Power Cost Monitor, while at the same time reducing its own residential users' billing rates by 8% this summer.

The stock bears investigation for inclusion in a balanced portfolio. Possessing solid earnings, high customer satisfaction, and environmentally aware policies, NSTAR pays a dividend of $.325 per common share, and the company has a long, long history of paying out dividends. NSTAR has a P/E multiple slightly below industry average, and EPS slightly above industry average. The stock price has quite literally not budged since 1 January 2007, opening the year trading at $34.95, and closing the end of May at $34.85. NSTAR has annual revenues of $3.5 billion and serves 1.4 million customers in Massachusetts.

For 1Q 2007, NSTAR reported earnings of $47.8 million or EPS of $.45, up 10% from 1Q 2006. Electric sales were up 2% by volume while gas sales were up 14% by volume. NSTAR recently signed a 7-year rate agreement that will give it a large measure of earnings stability. Recently, NSTAR announced a partnership with Evergreen Solar, Inc. to provide solar generated energy as an affordable option for customers. NSTAR expects this small portion of its power generation to grow rapidly, further reducing generation costs, thus increasing the desirability of renewable energy choices for customers. NSTAR reported March 2006- 2007 EPS to be $1.96, up 8% from the previous reporting period.