Back to top

Hawaiian Electric (HE) Q2 Earnings Miss, Revenues Up Y/Y

Read MoreHide Full Article

Hawaiian Electric Industries Inc. (HE - Free Report) reported adjusted earnings per share (EPS) of 36 cents in the second quarter of 2017, which missed the Zacks Consensus Estimate of 39 cents by 7.7%. On a year-over-year basis, the figure declined 16.3% from the prior-year quarter level of 43 cents.
 
Total Revenue

Hawaiian Electric’s total revenue of $632.3 million in the reported quarter surpassed the Zacks Consensus Estimate of $568 million by 11.4% and was up 11.7% year over year. The top line improved primarily owing to higher contributions from Electric Utility and Bank.

Operating Statistics

Total expenses were up 15.7% year over year to $556.4 million during the second quarter.

Total operating income was $75.9 million, down 11.2%, mainly due to lower contributions from Electric Utility.

Interest expenses amounted to $20.4 million, up from $17.3 million in the prior-year quarter.

Segment Details

Electric Utility: Segment revenues in the reported quarter were $556.9 million, up 12.4% year over year. Net income, however, declined 28.5% to $25.6 million from $35.9 million a year ago.

Banking: Segment revenues were $75.3 million, up 6.5%. Net income came in at $16.7 million, up 26%.

Other: Segment revenues were $0.1 million, down 23% year over year. But it incurred a quarterly net loss of approximately $3.7 million compared with the year-ago loss of $5 million.

Financial Update

Cash and cash equivalents as of Jun 30 were $210.4 million, down from $278.5 million as of Dec 31, 2016.

Long-term debt, net other than bank, at the end of the second quarter was $1,618.6 million, down from $1,619 million at 2016-end.

Guidance

Hawaiian Electric reaffirmed its 2017 adjusted EPS in the range of $1.55–$1.70.

In the Electric Utility segment it expects EPS in the band of $1.17–$1.27 and the same at the Banking segment is anticipated to be in 53–56 cents range.

Zacks Rank

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

Peer Releases

DTE Energy Company (DTE - Free Report) reported second-quarter 2017 operating earnings per share of $1.07, which surpassed the Zacks Consensus Estimate of 97 cents by 10.3%. Operating earnings also grew 9.2% from the year-ago figure of 98 cents.

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2017 adjusted earnings of $1.86 per share, beating the Zacks Consensus Estimate of $1.76 by 5.7%. The bottom line was also up by 11.4% year over year.

WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, surpassing the Zacks Consensus Estimate of 59 cents by 6.8%, and the year-ago figure of 57 cents by 10.5%.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>



More from Zacks Analyst Blog

You May Like