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Why Is Xcel Energy (XEL) Up 4.5% Since the Last Earnings Report?
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More than a month has gone by since the last earnings report for Xcel Energy Inc. (XEL - Free Report) . Shares have added about 4.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Xcel Energy Tops Q3 Earnings on Higher Electric Margin
Xcel Energy Inc. recorded third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%. Earnings were 7.8% higher than the year-ago quarter.
The improvement in earnings was due to higher electric margins, lower effective tax rate and a fall in operating and maintenance expenses.
Total Revenues
Xcel Energy’s third-quarter revenues of $3,016.9 million missed the Zacks Consensus Estimate of $3,191 million by 5.4%. Revenues also marginally lagged the prior-year quarter figure of $3,040.1 million by 0.8%.
Segment Results
Electric: Revenues decreased to $2,783.6 million from $2,799.9 million in the reported quarter.
Natural Gas: Quarterly revenues decreased 3.5% to $214.3 million.
Other: The segment recorded revenues of $19.1 million in the quarter, up 4.4%.
Quarterly Highlights
Xcel Energy’s existing Steel-for-Fuel investment strategy and its proposed Colorado Energy Plan will help to develop a carbon free generation fleet. These initiatives will also enable the company to lower energy bills of its customers.
Total operating expenses decreased 0.7% year over year to $2,198.6 million. Costs declined primarily due to lower electric fuel and purchased power and drop in natural gas sold and transported.
Operating income in the reported quarter was down 1.1% year over year to $818.4 million.
Looking Ahead
Xcel Energy has revised its 2017 operating earnings guidance to the range of $2.27-$2.32 per share from the prior prediction of $2.25-$2.35.
The company raised its long-term earnings growth rate to 5-6% from the previous expectation of 4-6%.
Xcel Energy issued 2018 operating earnings guidance of $2.37 to $2.47 per share.
How Have Estimates Been Moving Since Then?
Fresh estimate followed a downward path over the past two months. In the past month, the consensus estimate has shifted lower by 8.9% due to these changes.
Currently, Xcel Energy's stock has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.
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Why Is Xcel Energy (XEL) Up 4.5% Since the Last Earnings Report?
More than a month has gone by since the last earnings report for Xcel Energy Inc. (XEL - Free Report) . Shares have added about 4.5% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Xcel Energy Tops Q3 Earnings on Higher Electric Margin
Xcel Energy Inc. recorded third-quarter 2017 operating earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%. Earnings were 7.8% higher than the year-ago quarter.
The improvement in earnings was due to higher electric margins, lower effective tax rate and a fall in operating and maintenance expenses.
Total Revenues
Xcel Energy’s third-quarter revenues of $3,016.9 million missed the Zacks Consensus Estimate of $3,191 million by 5.4%. Revenues also marginally lagged the prior-year quarter figure of $3,040.1 million by 0.8%.
Segment Results
Electric: Revenues decreased to $2,783.6 million from $2,799.9 million in the reported quarter.
Natural Gas: Quarterly revenues decreased 3.5% to $214.3 million.
Other: The segment recorded revenues of $19.1 million in the quarter, up 4.4%.
Quarterly Highlights
Xcel Energy’s existing Steel-for-Fuel investment strategy and its proposed Colorado Energy Plan will help to develop a carbon free generation fleet. These initiatives will also enable the company to lower energy bills of its customers.
Total operating expenses decreased 0.7% year over year to $2,198.6 million. Costs declined primarily due to lower electric fuel and purchased power and drop in natural gas sold and transported.
Operating income in the reported quarter was down 1.1% year over year to $818.4 million.
Looking Ahead
Xcel Energy has revised its 2017 operating earnings guidance to the range of $2.27-$2.32 per share from the prior prediction of $2.25-$2.35.
The company raised its long-term earnings growth rate to 5-6% from the previous expectation of 4-6%.
Xcel Energy issued 2018 operating earnings guidance of $2.37 to $2.47 per share.
How Have Estimates Been Moving Since Then?
Fresh estimate followed a downward path over the past two months. In the past month, the consensus estimate has shifted lower by 8.9% due to these changes.
Xcel Energy Inc. Price and Consensus
Xcel Energy Inc. Price and Consensus | Xcel Energy Inc. Quote
VGM Scores
Currently, Xcel Energy's stock has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value and growth investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are looking for an inline return from the stock in the next few months.