Xcel Energy (XEL) Misses Q2 Earnings Estimates, Keeps View

Minneapolis-based Xcel Energy Inc. (NYSE:XEL) recorded second-quarter 2016 operating earnings of 39 cents per share, lagging the Zacks Consensus Estimate of 41cents by 4.9%.Earnings were at par with the year-ago quarter figure.

Total Revenue

Xcel Energy’s second-quarter revenues of $2,499.8 million lagged the Zacks Consensus Estimate of $2,530 million by 1.2% and declinedmarginally from the prior-year quarter level of $2,515.1 million.

Segment Results

Electric: Segment revenues increased from $2,213.5 million to $2,224.1 million in the second quarter of 2016.

Natural Gas: Quarterly revenues dropped 8.9% to nearly $258.9 million in the reported quarter.

Other: Segment revenues of $16.8 million in the reported quarter decreased 4% from the year-ago period.

Quarterly Highlights

Total operating expenses decreased 1.2% year over year to $2068.3 million. Costs decreased primarily due to lower cost of natural gas sold and transported, and reduced expenses related to electric fuel and purchased power.

Operating income in the reported quarter increased 2% year over year to $431.6 million.

Financial Highlights

Total debt as of Jun 30, 2016, was $14.3 billion, out of which long-term debt comprised $13.1 billion.

2016 Guidance

Xcel Energy reiterated its 2016 operating earnings guidance in the range of $2.12–$2.27 per share with a projected long-term annual earnings growth rate of 4–6%.

Xcel Energy expects retail electric utility sales to decrease 0.5%, while natural gas sales are anticipated to be flat.

Peer Releases

NiSource Inc. (NYSE:NI) reported second-quarter operating earnings of 8 cents per share, surpassing the Zacks Consensus Estimate of 7 cents by 14.3%.

FirstEnergy Corporation (NYSE:FE) announced second-quarter operating earnings of 56 cents per share, beating the Zacks Consensus Estimate of 53 cents by 5.7%.

NextEra Energy, Inc. (NYSE:NEE) reported second-quarter adjusted earnings of $1.67 per share, outpacing the Zacks Consensus Estimate of $1.58 by 5.7%.

Zacks Rank

Xcel Energy currently has a Zacks Rank #4 (Sell).