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Xcel Energy (XEL) Q4 Earnings Match Estimates, Revenues Rise Y/Y

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Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, inline with the Zacks Consensus Estimate. Meanwhile, the bottom line fell 3.6% from the year-ago earnings of 56 cents per share.

Total Revenues

Xcel Energy’s fourth-quarter revenues of $2,947 million missed the Zacks Consensus Estimate of $3,051 million by 3.4%. However, the top line improved 5.3% from the prior-year quarter’s $2,798 million. This upside is mainly on higher contribution from the electric and natural gas 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 6.3% to $2,372 million from $2,231 million in the year-ago quarter.

Natural Gas: Revenues improved 1.8% from the year-ago quarter’s $544 million to $554 million.

Other: Revenues in the segment fell 8.7% to $21 million from the year-ago quarter’s $23 million.

Quarterly Highlights

Total operating expenses increased 7.4% year over year to $2,521 million, primarily due to higher electric fuel and purchased power as well as elevated operating and maintenance expenses.

Operating income in the reported quarter dipped 5.3% from the prior-year quarter to $426 million.

Total interest charges and financing costs in the reported quarter rose 9.7% from the prior-year figure to $203 million.

Looking Ahead

Xcel Energy reaffirmed 2021 EPS guidance in the range of $2.90-$3. Also, the utility plans to invest $4,475 million in 2021 and its total capital investment plan is $23,500 million for the 2021-2025 time period. The company anticipates to deliver long-term annual EPS growth of 5-7%, relying on the 2020 base of $2.78 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 #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Release

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

Upcoming Releases

CMS Energy Corporation (CMS - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 4. The Zacks Consensus Estimate for the quarterly bottom line is pegged at 55 cents per share.

Duke Energy (DUK - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11. The Zacks Consensus Estimate for earnings is pegged at $1.02 per share.

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