You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is HEI (HE) Down 9.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Hawaiian Electric (HE - Free Report) . Shares have lost about 9.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is HEI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Hawaiian Electric Q2 Earnings Lag Estimates, Sales Up Y/Y
Hawaiian Electric reported earnings per share (EPS) of 48 cents for the second quarter of 2022, which lagged the Zacks Consensus Estimate of 52 cents by 7.7%.
The bottom line also declined 17.2% from 58 cents per share in the prior-year quarter, primarily due to the prior year's negative provision for credit losses at American Savings Bank and a return to a more normalized provision expense due to strong loan growth.
Hawaiian Electric’s total revenues of $895.6 million in the second quarter improved 31.7% from the prior-year quarter’s $680.3 million. The rise in revenues can be attributed to increased contributions from the Electric Utility and Other segments.
Electric Utility: Revenues in this segment totaled $818.9 million, up 36.1% year over year.
Banking: In this segment, revenues totaled $75.3 million, down 2.5% year over year.
Others: Revenues from other sources surged 26.1% to $1,410 million from $1,118 million in the year-ago quarter.
Total expenses increased 39.9% year over year to $808.9 million in the second quarter. The increase can be attributed to higher expenses in the Electric Utility and Bank segments and Other segments.
The total operating income declined 14.9% year over year to $86.7 million in the second quarter.
Net interest expenses during the quarter amounted to $24.9 million, up 7.1% from $23.3 million in the prior-year quarter.
Hawaiian Electric reiterated its 2022 EPS guidance in the range of $2.00-$2.20. The Zacks Consensus Estimate for earnings, pegged at $2.19, lies at the higher end of the company’s guided range.
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.