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HEI (HE) Up 8.7% Since Last Earnings Report: Can It Continue?

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A month has gone by since the last earnings report for Hawaiian Electric (HE - Free Report) . Shares have added about 8.7% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is HEI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

Hawaiian Electric Q3 Earnings Rise Y/Y

Hawaiian Electric 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.


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


How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

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