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Hawaiian Electric (HE) Q2 Earnings Miss, Revenues Up Y/Y

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Hawaiian Electric Industries Inc. (HE - Free Report) reported adjusted earnings per share (EPS) of 36 cents in the second quarter of 2017, which missed the Zacks Consensus Estimate of 39 cents by 7.7%. On a year-over-year basis, the figure declined 16.3% from the prior-year quarter level of 43 cents.
 
Total Revenue

Hawaiian Electric’s total revenue of $632.3 million in the reported quarter surpassed the Zacks Consensus Estimate of $568 million by 11.4% and was up 11.7% year over year. The top line improved primarily owing to higher contributions from Electric Utility and Bank.

Operating Statistics

Total expenses were up 15.7% year over year to $556.4 million during the second quarter.

Total operating income was $75.9 million, down 11.2%, mainly due to lower contributions from Electric Utility.

Interest expenses amounted to $20.4 million, up from $17.3 million in the prior-year quarter.

Segment Details

Electric Utility: Segment revenues in the reported quarter were $556.9 million, up 12.4% year over year. Net income, however, declined 28.5% to $25.6 million from $35.9 million a year ago.

Banking: Segment revenues were $75.3 million, up 6.5%. Net income came in at $16.7 million, up 26%.

Other: Segment revenues were $0.1 million, down 23% year over year. But it incurred a quarterly net loss of approximately $3.7 million compared with the year-ago loss of $5 million.

Financial Update

Cash and cash equivalents as of Jun 30 were $210.4 million, down from $278.5 million as of Dec 31, 2016.

Long-term debt, net other than bank, at the end of the second quarter was $1,618.6 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.

In the Electric Utility segment it expects EPS in the band of $1.17–$1.27 and the same at the Banking segment is anticipated to be in 53–56 cents range.

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 (DTE - Free Report) reported second-quarter 2017 operating earnings per share of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. The bottom line was also up by 11.4% year over year.

WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 59 cents by 6.8%, and the year-ago figure of 57 cents by 10.5%.

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