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Xcel Energy (XEL) Q3 Earnings Miss Estimates, Trims Guidance

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Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2022 operating earnings of $1.18 per share, which lagged the Zacks Consensus Estimate by 1.7%. The bottom line improved by 4.4% from the year-ago earnings of $1.13 per share.

Total Revenues

Xcel Energy’s third-quarter revenues of $4,082 million beat the Zacks Consensus Estimate of $3,595 million by 13.5%. The same improved by 17.7% from the year-ago quarter’s figure of $3,467 million.

 

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 improved by 16.5% to $3,699 million from $3,176 million in the year-ago quarter.

Natural Gas: Revenues improved by 33.2% from the year-ago quarter’s $268 million to $357 million.

Other: Revenues in the segment increased 13.1% to $26 million from the year-ago quarter’s $23 million.

Highlights of the Release

Total operating expenses increased by 19.5% year over year to $3,158 million, primarily due to higher operating and maintenance expenses, higher electric fuel and purchased power costs along with the increased cost of natural gas sold and transported.

The operating income in the reported quarter improved by 12% from the prior-year quarter’s reading to $924 million.

Total interest charges and financing costs in the reported quarter rose 16.2% from the prior-year figure to $237 million.

Guidance

Xcel Energy trimmed its 2022 earnings per share (EPS) to the range of $3.14-$3.19 from the prior range of $3.10-$3.20. The Zacks Consensus Estimate for 2022 earnings of $3.16 per share is near the midpoint of the guided range.

Xcel Energy initiated 2023 EPS guidance in the range of $3.30-$3.40. The Zacks Consensus Estimate of $3.36 for 2023 is marginally ahead of the midpoint of the 2023 EPS range.

XEL expects to invest $29.5 billion during the 2023-2027 period. More than 60% of the planned capital expenditure will be directed to strengthening its electric transmission and distribution network.

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.

Upcoming Releases

NextEra Energy (NEE - Free Report) is slated to report third-quarter 2022 earnings on Oct 28 before market open. The Zacks Consensus Estimate for third-quarter EPS is pegged at 79 cents.

NextEra Energy’s long-term earnings growth is currently pegged at 9.7%. The Zacks Consensus Estimate for NEE’s 2022 earnings implies year-over-year growth of 13.3%.

WEC Energy Group (WEC - Free Report) is slated to report third-quarter 2022 earnings on Nov 1 before market open. The Zacks Consensus Estimate for the third-quarter EPS is pegged at 86 cents.

WEC Energy’s long-term earnings growth is currently pegged at 6.1%. The Zacks Consensus Estimate for WEC’s 2022 earnings implies year-over-year growth of 6.3%.

PNM Resources (PNM - Free Report) is slated to report third-quarter 2022 earnings on Nov 4 before market open. The Zacks Consensus Estimate for third-quarter EPS is pegged at $1.29.

PNM Resources’ long-term earnings growth is currently pegged at 4.2%. The Zacks Consensus Estimate for PNM’s 2022 earnings implies year-over-year growth of 6.1%.

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