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Xcel Energy (XEL) Q2 Earnings Beat Mark, Revenues Rise Y/Y
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Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2021 operating earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 56 cents by 3.6%. The bottom line improved 7.4% from the year-ago earnings of 54 cents per share.
Total Revenues
Xcel Energy’s second-quarter revenues of $3,068 million beat the Zacks Consensus Estimate of $2,842 million by 8%. The same improved 18.6% from the prior-year quarter’s $2,586 million.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Electric: Revenues rose 13.6% to $2,597 million from $2,286 million in the year-ago quarter.
Natural Gas: Revenues improved 60.4% from the year-ago quarter’s $280 million to $449 million.
Other: Revenues in the segment increased 10% to $22 million from the year-ago quarter’s $20 million.
Quarterly Highlights
Total operating expenses increased 21.5% year over year to $2,630 million, primarily due to higher electric fuel and purchased power, cost of natural gas sold and transported as well as elevated operating and maintenance expenses.
Operating income in the reported quarter improved 3.8% from the prior-year quarter to $438 million.
Total interest charges and financing costs in the reported quarter rose 5.1% from the prior-year figure to $206 million.
Electric and natural gas customers increased 1.1% and 1.2% respectively, year over year.
During the reported quarter, the utility received an approval for the 74-megawatt (MW) Mustang solar project in Wisconsin and also to buy 120-MW wind project from Allete. It proposed an alternative resource plan in Minnesota, which will help the company attain greater carbon reduction and lower the bills for customers.
Looking Ahead
Xcel Energy reaffirmed 2021 EPS guidance in the range of $2.90-$3. The company anticipates delivering long-term annual EPS growth of 5-7%, based on $2.78 per share, which represents the mid-point of the original 2020 guided range of $2.73-$2.83. Xcel Energy projects an annual dividend rate hike of 5-7% and targets a payout ratio of 60-70%.
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.
FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2021 operating earnings of 59 cents per share, in line with the Zacks Consensus Estimate.
DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.
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Xcel Energy (XEL) Q2 Earnings Beat Mark, Revenues Rise Y/Y
Xcel Energy Inc. (XEL - Free Report) posted second-quarter 2021 operating earnings of 58 cents per share, surpassing the Zacks Consensus Estimate of 56 cents by 3.6%. The bottom line improved 7.4% from the year-ago earnings of 54 cents per share.
Total Revenues
Xcel Energy’s second-quarter revenues of $3,068 million beat the Zacks Consensus Estimate of $2,842 million by 8%. The same improved 18.6% from the prior-year quarter’s $2,586 million.
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 13.6% to $2,597 million from $2,286 million in the year-ago quarter.
Natural Gas: Revenues improved 60.4% from the year-ago quarter’s $280 million to $449 million.
Other: Revenues in the segment increased 10% to $22 million from the year-ago quarter’s $20 million.
Quarterly Highlights
Total operating expenses increased 21.5% year over year to $2,630 million, primarily due to higher electric fuel and purchased power, cost of natural gas sold and transported as well as elevated operating and maintenance expenses.
Operating income in the reported quarter improved 3.8% from the prior-year quarter to $438 million.
Total interest charges and financing costs in the reported quarter rose 5.1% from the prior-year figure to $206 million.
Electric and natural gas customers increased 1.1% and 1.2% respectively, year over year.
During the reported quarter, the utility received an approval for the 74-megawatt (MW) Mustang solar project in Wisconsin and also to buy 120-MW wind project from Allete. It proposed an alternative resource plan in Minnesota, which will help the company attain greater carbon reduction and lower the bills for customers.
Looking Ahead
Xcel Energy reaffirmed 2021 EPS guidance in the range of $2.90-$3. The company anticipates delivering long-term annual EPS growth of 5-7%, based on $2.78 per share, which represents the mid-point of the original 2020 guided range of $2.73-$2.83. 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 Utility Releases
NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2021 adjusted earnings of 71 cents per share, which beat the Zacks Consensus Estimate of 67 cents by 5.6%.
FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2021 operating earnings of 59 cents per share, in line with the Zacks Consensus Estimate.
DTE Energy Company (DTE - Free Report) reported second-quarter 2021 operating earnings per share of $1.70, which beat the Zacks Consensus Estimate of $1.44 by 18.1%.