Minneapolis-based Xcel Energy Inc. (NYSE:XEL) recorded first-quarter operating earnings of 47 cents per share, surpassing the Zacks Consensus Estimate and the year-ago earnings by a penny.
Total Revenue
Xcel Energy’s first-quarter revenues of $2,772.3 million lagged the Zacks Consensus Estimate of $3,030 million by 8.5%. Revenues decreased 6.4% year over year due to lower contribution from its Electrical and Natural Gas segments.
Segment Revenue
Electric: Revenues decreased 1.8% year over year to $2,185.1 million.
Natural Gas: Quarterly revenues decreased 21.0% to nearly $565.7 million.
Other: Segment revenues of $21.5 million in the reported quarter increased 0.5% from the year-ago period.
Quarterly Highlights
Total operating expenses decreased 12.6% year over year to $2,282.4 million. Costs shrunk primarily due to lower cost of natural gas sold and transported and reduced expenses from electric fuel and purchased power.
Operating income in the reported quarter increased 39.6% year over year to $489.9 million.
Financial Highlights
Total debt as of Mar 31, 2016, was $14 billion, out of which long-term debt was $13.1 billion.
2016 Guidance
Xcel Energy maintained the 2016 operating earnings guidance in the range of $2.12–$2.27 per share and projects long-term earnings growth of 4–6% per year.
Xcel Energy expects retail electric utility sales to grow 0.5% and natural gas sales to remain flat.
Peer Releases
NiSource Inc. (NYSE:NI) reported first-quarter 2016 operating earnings of 60 cents per share, surpassing the Zacks Consensus Estimate of 58 cents by 3.4%.
PPL Corporation (NYSE:PPL) reported first-quarter 2016 adjusted earnings of 67 cents per share, falling short of the Zacks Consensus Estimate of 75 cents by 10.7%.
Edison International (NYSE:EIX) reported first-quarter 2016 results, wherein adjusted earnings of 82 cents per share came in below of the Zacks Consensus Estimate of 89 cents by 7.9%.
Zacks Rank
Xcel Energy currently has a Zacks Rank #4 (Sell).
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