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Hawaiian Electric (HE) Q3 Earnings Rise Y/Y, Stock Rallies

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Shares of Hawaiian Electric Industries Inc. (HE - Free Report) rose 12% to reach $37.05 on Nov 11, reflecting investor optimism following the company's third-quarter results.

The company reported earnings per share of 59 cents in the third quarter of 2020, which rose 1.7% from 58 cents in the prior-year quarter.

Total Revenues

Hawaiian Electric’s total revenues of $641.4 million in the third quarter declined 16.8% from the prior-year quarter’s $770.9 million. The decline in revenues can be attributed to decreased contributions from both the Electric Utility and Bank segments.

Operating Statistics

Total expenses declined 19.6% year over year to $541.9 million during the third quarter. The decline can be attributed to lower expenses at the Electric Utility segment.

Total operating income improved 3% year over year to $99.6 million in the third quarter due to lower contributions from the Bank segment.

Net interest expenses amounted to $22.1 million, slightly down from $22.4 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues in this segment totaled $562.6 million, down 18.3% year over year. Meanwhile, net income surged 28.4% to $60.1 million from $46.8 million a year ago.

Banking: In this segment, revenues totaled $78.6 million, down 4.7% year over year. Meanwhile, net income came in at $12.2 million, plunging 49.6% year over year.

Financial Position

Hawaiian Electric had cash and cash equivalents of $193.1 million as of Sep 30, 2020, compared with $196.8 million as of Dec 30, 2019.

Long-term debt was $2,068.9 million as of Jun 30, 2020, compared with $1,964.4 million as of Dec 31, 2019.

During the first nine months of 2020, net cash inflow from operating activities totaled $312.3 million compared with cash inflow of $3141.4 million in the first nine months of 2019.

Guidance

Hawaiian Electric has reaffirmed its earnings guidance for the electric utility unit in the range of $1.46-$1.54 for 2020.

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.

Other Utility Releases

WEC Energy Group (WEC - Free Report) recorded third-quarter 2020 earnings per share of 84 cents, which beat the Zacks Consensus Estimate of 76 cents by 10.5%.

Xcel Energy (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.

CMS Energy (CMS - Free Report) reported third-quarter 2020 adjusted earnings per share of 77 cents, which surpassed the Zacks Consensus Estimate of 68 cents by 13.2%.

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