Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Hawaiian Electric (HE) Q3 Earnings Lag, Retains '17 EPS View

Published 11/02/2017, 10:38 PM
Updated 07/09/2023, 06:31 AM

Hawaiian Electric Industries Inc. (NYSE:HE) reported adjusted earnings per share (EPS) of 55 cents in third-quarter 2017, which missed the Zacks Consensus Estimate of 57 cents by 3.5%. On a year-over-year basis, the figure declined 5.2% from the prior-year quarter level of 58 cents.

The company’s GAAP earnings were also 55 cents in the reported quarter, reflecting a 53% decline from the year-ago figure of $1.17.

Total Revenues

Hawaiian Electric’s total revenues of $673.2 million in the reported quarter surpassed the Zacks Consensus Estimate of $646.1 million by 4.2% and was also up 4.2% year over year. The top line improved primarily owing to higher contributions from Electric Utility and Other segments.

Operating Statistics

Total expenses were up 4.3% year over year to $563.6 million during the third quarter.

Total operating income was $109.5 million, up 3.9%, mainly due to higher contributions from Bank segment.

Net interest expenses amounted to $19.2 million, down from $19.4 million in the prior-year quarter.

Segment Details

Electric Utility: Segment revenues in the reported quarter were $598.8 million, up 4.6% year over year. Net income rose 1.1% to $47.5 million from $47 million a year ago.

Banking: Segment revenues were $74.3 million, up 0.8%. Net income came in at $17.6 million, up 16.5%.

Other: Segment revenues were $0.1 million, up 35.1% year over year. However, it incurred a quarterly net loss of approximately $5 million as against the year-ago net income of $65.1 million.

Financial Update

Cash and cash equivalents as of Sep 30 were $202.2 million, down from $278.5 million as of Dec 31, 2016.

Long-term debt, net other than bank, at the end of the third quarter was $1,618.4 million, down from $1,619 million at 2016-end.

Guidance

Hawaiian Electric reaffirmed its 2017 adjusted EPS in the range of $1.55-$1.70.

However, in the Electric Utility segment it expects EPS in the lower end of the band of $1.17-$1.27, while the same at the Bank segment has been raised to the range of 58-60 cents compared to earlier guidance range of 53-56 cents.

Zacks Rank & Key Pick

Hawaiian Electric currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the same space is CenterPoint Energy, Inc. (NYSE:CNP) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CenterPoint Energy has surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, with an average beat of 10.34%.

Recent Peer Releases

PG&E Corporation’s (NYSE:PCG) adjusted operating EPS of $1.12 in third-quarter 2017 surpassed the Zacks Consensus Estimate of 94 cents by 19.1%. Earnings were also up 19.1% from 94 cents reported in the year-ago quarter.

CMS Energy Corporation (NYSE:CMS) reported third-quarter 2017 adjusted EPS of 62 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 12.7%. Quarterly earnings however declined 11.4% from the year-ago figure of 70 cents.

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>



CMS Energy Corporation (CMS): Free Stock Analysis Report

CenterPoint Energy, Inc. (CNP): Free Stock Analysis Report

Hawaiian Electric Industries, Inc. (HE): Free Stock Analysis Report

Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.