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

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Hawaiian Electric Industries Inc. (HE - Free Report) reported earnings per share (EPS) of 42 cents in the second quarter of 2018, which came in line with the Zacks Consensus Estimate. On a year-over-year basis, the bottom line rose 16.7% from the prior-year quarter level of 36 cents.

Total Revenues

Hawaiian Electric’s total revenues of $685.3 million in the reported quarter surpassed the Zacks Consensus Estimate of $638 million by 7.4% and was up 8.4% year over year. The top line improved owing to higher contributions from Electric Utility and Bank segments.

Operating Statistics

Total expenses were up 9.4% year over year to $606.5 million during the second quarter.

Total operating income was $78.8 million, up 1.3%, due to higher contributions from Bank.

Interest expenses amounted to $22 million, up from $20.4 million in the prior-year quarter.

Segment Details

Electric Utility: Segment revenues in the reported quarter were $608.1 million, up 9.2% year over year. Net income increased 21.5% to $31.2 million from $25.6 million a year ago.

Banking: Segment revenues were $77.1 million, up 2.4%. Net income came in at $20.6 million, up 22.9%.

Other: Segment revenues were $0.05 million, down 39% year over year. Moreover, this unit incurred a quarterly net loss of approximately $5.7 million compared with the year-ago loss of $3.7 million.

Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise

 

Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise | Hawaiian Electric Industries, Inc. Quote

Financial Update

Cash and cash equivalents as of Jun 30, 2018, were $254.7 million, down from $261.9 million as of Dec 31, 2017.

Net long-term debt, at the end of the second quarter, was $1.47 billion, up from $1.37 billion at 2017-end.

Guidance

Hawaiian Electric reaffirmed its 2018 guidance. The company continues to expect EPS in the range of $1.80-$2.00.

Additionally, for the Electric Utility segment, it continues to project EPS in the band of $1.33-$1.46 while the same for the Bank segment is still expected in the range of 68-74 cents.

Zacks Rank

Hawaiian Electric currently carries a Zacks Rank #4 (Sell).

Recent Utility Releases

Xcel Energy (XEL - Free Report) recorded second-quarter 2018 operating earnings of 52 cents per share, beating the Zacks Consensus Estimate of 47 cents by 10.6%. Also, the bottom line was 15.6% higher than the year-ago quarter’s tally. The company currently carries a Zacks Rank #3 (Hold).

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating earnings per share of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Electric Power (AEP - Free Report) reported second-quarter 2018 adjusted earnings per share of $1.01, beating the Zacks Consensus Estimate of 88 cents by 14.8%. The company currently carries a Zacks Rank #3.

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