Hawaiian Electric Industries Inc. (HE - Free Report) 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. (CNP - Free Report) , 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 (PCG - Free Report) 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 (CMS - Free Report) 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.
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Hawaiian Electric Industries Inc. (HE - Free Report) 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. (CNP - Free Report) , 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 (PCG - Free Report) 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 (CMS - Free Report) 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>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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