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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 earnings per share (EPS) of 39 cents in the second quarter of 2019, which missed the Zacks Consensus Estimate of 44 cents by 11.4%. The bottom line also declined 7.1% from 42 cents in the prior-year quarter.

Total Revenues

Hawaiian Electric’s total revenues of $715.5 million in the second quarter outpaced the Zacks Consensus Estimate of $593 million by 20.7% and rose 4.4% year over year. The improvement can be attributed to increased contributions from both the Electric Utility and Bank segments.

Operating Statistics

Total expenses increased 6% year over year to $642.9 million during the second quarter.

Moreover, total operating income declined 7.8% year over year to $72.6 million, due to lower contributions from the Bank segment.

Net interest expenses amounted to $23.5 million, up from $22 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues at this segment totaled $633.8 million, up 4.2% year over year. Also, net income increased 1% to $55.7 million from $55.1 million a year ago.

Banking: At this segment, revenues summed $81.7 million, up 6% year over year. Meanwhile, net income came in at $21.3 million, down 21%.

Financial Position

Hawaiian Electric had cash and cash equivalents of $198.5 million as of Jun 30, 2019, compared with $169.2 million as of Dec 30, 2018.

Long-term debt, other than bank, was $1,884 million as of Jun 30, 2019, compared with $1,879.6 million as of Dec 31, 2018.

In the first half of 2019, net cash inflow from operating activities totaled $133.4 million compared to the cash inflow of $108.3 million in the first half of 2018.

Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise

Guidance

Hawaiian Electric reaffirmed its earnings guidance for 2019. The company continues to expect earnings of $1.85-$2.05 per share. The Zacks Consensus Estimate for 2019 earnings is pegged at $1.95, which lies at the midpoint of the company’s guided range.

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

Recent Utility Releases

American Electric Power Co., Inc. (AEP - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy (NEE - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, earnings were up 12.9% on a year-over-year basis.

CMS Energy Corporation (CMS - Free Report) , a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of 33 cents, down 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%.

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