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Xcel Energy (XEL) Q2 Earnings Beat Estimates, Revenues Miss

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Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2020 operating earnings of 54 cents per share, surpassing the Zacks Consensus Estimate of 46 cents by 17.4%. The bottom line also increased 17.4% from the year-ago earnings of 46 cents per share.

While there was a drop in sales due to the pandemic, earnings benefited from favorable weather conditions and the company’s cost-management efforts.

Total Revenues

Xcel Energy’s second-quarter revenues of $2,586 million missed the Zacks Consensus Estimate of $2,759 million by 6.3%. However, the top line improved 0.3% from the prior-year quarter’s $2,577 million. This upside was owing to higher contribution from the electric segment than the prior-year quarter.

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote

Segmental Results

Electric: Revenues rose 1.7% to $2,286 million from $2,249 million in the year-ago quarter.

Natural Gas: Revenues fell 9.1% from the year-ago quarter to $280 million.

Other: Revenues in the segment grossed $20 million, on par with the year-ago figure.

Quarterly Highlights

Total operating expenses slid 0.1% year over year to $2,164 million, primarily owing to lower operating and maintenance expenses, and cost of natural gas sold and transported.

Operating income in the reported quarter inched up 2.9% from the prior-year quarter to $422 million.

Total interest charges and financing costs in the reported quarter rose 9.5% from the prior-year figure to $196 million.

Looking Ahead

Xcel Energy reaffirmed its 2020 earnings per share guidance in the range of $2.73-$2.83. The company expects to deliver long-term annual EPS growth of 5-7% based on the 2019 reported figure of $2.60 per share, which represents the mid-point of the original 2019 guided range of $2.55-$2.65 per share.

Xcel Energy projects an annual dividend rate hike of 5-7% and targets a payout ratio of 60-70%.

Zacks Rank

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

Other Releases

NextEra Energy (NEE - Free Report) reported second-quarter 2020 adjusted earnings of $2.61 per share, surpassing the Zacks Consensus Estimate of $2.50 by 4.4%.

FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%.

DTE Energy Company (DTE - Free Report) reported second-quarter 2020 operating earnings per share of $1.53, which beat the Zacks Consensus Estimate of $1.31 by 16.8%.

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