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Xcel Energy (XEL) Misses Q4 Earnings, LTG View Unchanged

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Xcel Energy Inc. (XEL - Free Report) recorded fourth-quarter 2017 operating earnings of 42 cents per share, lagging the Zacks Consensus Estimate of 43 cents by 2.3%. Also, the bottom line was 6.7% lower than the year-ago quarter.

The year-over-year decline in earnings was due to higher interest charges, increased depreciation expenses and property taxes.

Taking into account the negative impact of 5 cents from the Tax Cuts and Jobs Act (TCJA), GAAP earnings in the quarter were 37 cents compared with 45 cents reported in the year-ago quarter.

Total Revenues

Xcel Energy’s fourth-quarter revenues of $2,796 million missed the Zacks Consensus Estimate of $2,940 million by 4.9%. Revenues were almost in-line with the prior-year quarter figure of $2,795 million.

Xcel Energy Inc. Price, Consensus and EPS Surprise
 

Xcel Energy Inc. Price, Consensus and EPS Surprise | Xcel Energy Inc. Quote

Segment Results

Electric: Revenues decreased to $2,256 million from $2,291 million in the reported quarter.

Natural Gas: Quarterly revenues improved 7.2% to $520 million.

Other: The segment recorded revenues of $20 million in the quarter, up 5.3%.

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 increased 1.8% year over year to $2,370 million. Costs increased primarily due higher operating and maintenance and depreciation expenses.

Operating income in the reported quarter was down 8.6% year over year to $426 million.

Looking Ahead

Xcel Energy expects its 2018 operating earnings to be in the range of $2.37-$2.47 per share.

The company expects to deliver long-term earnings growth in the range of 5-6% from the 2017 base of $2.30 per share.

Zacks Rank

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

Peer Releases

Dominion Energy Inc. (D - Free Report) reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.

American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2017 operating earnings per share of 85 cents, beating the Zacks Consensus Estimate of 81 cents by 4.9%.

NextEra Energy, Inc.(NEE - Free Report) reported fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.

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