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Hawaiian Electric (HE) Tops Q3 Earnings, Sales Down Y/Y

CMS HE ETR DTE

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Hawaiian Electric Industries Inc. (HE - Free Report) reported adjusted earnings of 58 cents per share in the third quarter of 2016, beating both the Zacks Consensus Estimate as well as the year-ago quarter’s equivalent of 49 cents by 18.4%.

Total revenue in the reported quarter was $646.1 million, down 9.9% year over year. The top line declined primarily due to lower contributions from Electric Utility, partially offset by higher contributions from Bank and Other.

Operating Statistics

Total expenses were down 12.8% year over year to $540.6 million. Meanwhile, total operating income was $105.4 million, up 8.6% mainly on higher contributions from Electric Utility and Bank. Interest expenses amounted to $19.4 million, up from $19.2 million in the prior-year quarter.

HAWAIIAN ELEC Price, Consensus and EPS Surprise

 

HAWAIIAN ELEC Price, Consensus and EPS Surprise | HAWAIIAN ELEC Quote

Segment Details

Electric Utility: Segment revenues in the reported quarter were $572.3 million, down 11.7% year over year. Net income, however, increased 9.2% to $47 million from $43 million a year ago.

Banking: Segment revenues in the reported quarter were $73.7 million, up 6.7%. Net income came in at $15.1 million, up 12.3%.

Other: Segment revenues in the reported quarter were $94 million. The segment reported a quarterly net income of approximately $65.1 million, as against the year-ago loss figure of about $5.8 million.

Financial Update

Cash and cash equivalents as of Sep 30, 2016, were $284.4 million, down from $300.5 million as of Dec 31, 2015. Long-term debt, net other than bank, was $1,579.1 million, slightly up from $1,578.4 million at 2015-end.

 



Guidance

Hawaiian Electric raised its 2016 adjusted earnings per share guidance to the range of $1.72–$1.78, compared to the earlier guidance of $1.62–$1.75, based on its year-to-date actual performance and excluding any terminated merger or spin-off related items.

The company however continues to expect 2016 utility earnings in the band of $1.28 to $1.36 per share and bank earnings in the range of 50 cents to 54 cents.

Zacks Rank

Hawaiian Electric presently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Peer Releases

DTE Energy Company (DTE - Free Report) reported third-quarter 2016 operating earnings per share of $1.96, beating the Zacks Consensus Estimate of $1.54 by 27.3%. Reported earnings were also up 40% from the year-ago figure of $1.40.

Entergy Corporation (ETR - Free Report) posted third-quarter 2016 operating earnings of $2.31 per share, beating the Zacks Consensus Estimate of $1.95 by 18.5%. The reported number also improved 21.6% from $1.90 reported a year ago.

CMS Energy Corporation (CMS - Free Report) reported third-quarter 2016 adjusted earnings per share of 70 cents, beating the Zacks Consensus Estimate of 60 cents by 16.7%. Quarterly earnings also increased 32.1% from the year-ago figure of 53 cents.

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