Hawaiian Electric (HE) Beats On Q1 Earnings, Keeps '17 View

Hawaiian Electric Industries Inc. (NYSE:HE) reported adjusted earnings per share (EPS) of 31 cents in the first quarter of 2017, which surpassed the Zacks Consensus Estimate of 29 cents by 6.9%. On a year-over-year basis, the figure was in line with the prior-year quarter level.

Total Revenue

Hawaiian Electric’s total revenue of $591.6 million in the reported quarter also surpassed the Zacks Consensus Estimate of $555 million by 6.6% and was up 7.4% year over year. The top line improved primarily due to higher contributions from Electric Utility, Bank and Other.

Operating Statistics

Total expenses were up 8.6% year over year to $523.7 million during the first quarter.

Total operating income was $67.9 million, down 1.4% mainly on lower contributions from Electric Utility.

Interest expenses amounted to $19.6 million, down from $20.1 million in the prior-year quarter.

Segment Details

Electric Utility: Segment revenues in the reported quarter were $518.6 million, up 7.6% year over year. Net income, however, declined 3.4% to $48.9 million from $55.3 million a year ago.

Banking: Segment revenues in the reported quarter were $72.9 million, up 5.8%. Net income came in at $24.2 million, up 23.3%.

Other: Segment revenues in the reported quarter were $0.1 million, up 39.7% year over year. However, it reported a quarterly net loss of approximately $5.2 million compared with the year-ago loss of $6.1 million.

Financial Update

Cash and cash equivalents as of Mar 31, 2017 were $234.2 million, down from $278.5 million as of Dec 31, 2016.

Long-term debt, net other than bank, at the end of first quarter was $1,618.7 million, down from $1,619 million at year-end 2016.

Guidance

Hawaiian Electric reaffirmed its 2017 adjusted EPS in the range of $1.55–$1.70 with EPS in the Electric Utility segment expected in the band of $1.17–$1.27 and that at the Banking segment in the range of 53–56 cents.

Zacks Rank

Hawaiian Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

DTE Energy Company (NYSE:DTE) reported first-quarter 2017 operating earnings per share of $1.79, which beat the Zacks Consensus Estimate of $1.57 by 14%. Total revenue came in at $3.24 billion, which surpassed the Zacks Consensus Estimate of $2.58 billion by 25.6%. The company has a Zacks Rank #3.

Entergy Corporation (NYSE:ETR) a Zacks Rank #3 company reported first-quarter 2017 operational earnings of 99 cents per share, missing the Zacks Consensus Estimate of $1.06 by 6.6%. However, total revenue of $2,588.5 million topped the Zacks Consensus Estimate of $2,566 million by 0.9%.

NextEra Energy, Inc. (NYSE:NEE) is also a Zacks Rank #3 company. It reported first-quarter 2017 adjusted EPS of $1.75, beating the Zacks Consensus Estimate of $1.56 by 12.2%. Operating revenues totaled $3,972 million, beating the Zacks Consensus Estimate of $3,943 million by nearly 0.7%.

Zacks' 2017 IPO Watch List

Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.

One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>