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Xcel Energy (XEL) Tops Q3 Earnings on Higher Electric Margin

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Xcel Energy Inc. (XEL - Free Report) recorded third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%. Earnings were 7.8% higher than the year-ago quarter.

The improvement in earnings was due to higher electric margins, lower effective tax rate and a fall in operating and maintenance expenses.

Total Revenues

Minneapolis-based Xcel Energy’s third-quarter revenues of $3,016.9 million missed the Zacks Consensus Estimate of $3,191 million by 5.4%. Revenues also marginally lagged the prior-year quarter figure of $3,040.1 million by 0.8%.

Segment Results

Electric: Revenues decreased to $2,783.6 million from $2,799.9 million in the reported quarter.

Natural Gas: Quarterly revenues decreased 3.5% to $214.3 million.

Other: The segment recorded revenues of $19.1 million in the quarter, up 4.4%.

Xcel Energy Inc. Price, Consensus and EPS Surprise

 

Xcel Energy Inc. Price, Consensus and EPS Surprise | Xcel Energy Inc. Quote


Quarterly Highlights

Xcel Energy’s existing Steel-for-Fuel investment strategy and its proposed Colorado Energy Plan will help to develop a carbon free generation fleet. These initiatives will also enable the company to lower energy bills of its customers.

Total operating expenses decreased 0.7% year over year to $2,198.6 million. Costs declined primarily due to lower electric fuel and purchased power and drop in natural gas sold and transported.

Operating income in the reported quarter was down 1.1% year over year to $818.4 million.

Looking Ahead

Xcel Energy has revised its 2017 operating earnings guidance to the range of $2.27-$2.32 per share from the prior prediction of $2.25-$2.35.

The company raised its long-term earnings growth rate to 5-6% from the previous expectation of 4-6%.

Xcel Energy issued 2018 operating earnings guidance of $2.37 to $2.47 per share.

Zacks Rank

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

Peer Releases

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.

DTE Energy (DTE - Free Report) reported third-quarter 2017 earnings of $1.48 per share, lagging the Zacks Consensus Estimate of $1.53 by 3.3%.

WEC Energy Group (WEC - Free Report) reported third-quarter 2017 operational earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents by 1.5%.

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