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Xcel Energy's (XEL) Earnings Miss Estimates in Q3, Up Y/Y
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Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%. The bottom line increased 5.2% from the year-ago quarter’s levels.
The year over year uptick in earnings was driven by higher electric margins courtesy of non-fuel riders, regulatory rate outcomes as well as lower O&M expenses. However, these factors were offset by increased depreciation and interest expenses as well as lower allowance for funds used during construction.
Total Revenues
Xcel Energy’s third-quarter revenues amounted to $3,013 million, which missed the Zacks Consensus Estimate of $3,221 million by 6.5%. The figure also declined 1.1% from the prior-year quarter’s tally of $3,048 million. Lower Electric and Natural gas revenues hurt the quarterly top line outcome.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Electric: Revenues declined 1.1% to $2,771 million from $2,802 million in the last reported quarter.
Natural Gas: Revenues declined 2.2% to $222 million from the year-ago quarter’s tally.
Other: Revenues in the segment amounted to $20 million in the quarter, up 5.3% from the year-ago quarter’s figure.
Quarterly Highlights
Total operating expenses fell 4.1% year over year to $2,255 million.
Operating income in the reported quarter improved 8.9% from the prior-year quarter’s tally to $758 million.
Total interest charges and financing costs in the reported quarter rose 17.1% from the prior-year quarter’s figure to $192 million.
Outlook
Xcel Energy narrowed its 2019 earnings per share (EPS) guidance in the range of $2.60-$2.65 from its previous expectation of $2.55 -$2.65. The midpoint of the current guidance is $2.62, which is higher than the Zacks Consensus Estimate of $2.61.
The company reaffirmed long-term earnings growth in the range of 5-7% from a base of $2.60 (mid-point of the original 2019 guidance range) per share. Xcel Energy projects an annual increase in dividend rate by 5-7%.
The company provided 2020 EPS guidance in the range of $2.73-$2.83. The midpoint of this range is $2.78 which is lower than the Zacks Consensus Estimate of $2.79.
NextEra Energy, Inc (NEE - Free Report) reported third-quarter 2019 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.27 by 5.3%.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2019 adjusted earnings per share (EPS) of $1.46, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2019 EPS of 73 cents, up 23.7% from the year-ago quarter’s reported figure of 59 cents.
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Xcel Energy's (XEL) Earnings Miss Estimates in Q3, Up Y/Y
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%. The bottom line increased 5.2% from the year-ago quarter’s levels.
The year over year uptick in earnings was driven by higher electric margins courtesy of non-fuel riders, regulatory rate outcomes as well as lower O&M expenses. However, these factors were offset by increased depreciation and interest expenses as well as lower allowance for funds used during construction.
Total Revenues
Xcel Energy’s third-quarter revenues amounted to $3,013 million, which missed the Zacks Consensus Estimate of $3,221 million by 6.5%. The figure also declined 1.1% from the prior-year quarter’s tally of $3,048 million. Lower Electric and Natural gas revenues hurt the quarterly top line outcome.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote
Segment Results
Electric: Revenues declined 1.1% to $2,771 million from $2,802 million in the last reported quarter.
Natural Gas: Revenues declined 2.2% to $222 million from the year-ago quarter’s tally.
Other: Revenues in the segment amounted to $20 million in the quarter, up 5.3% from the year-ago quarter’s figure.
Quarterly Highlights
Total operating expenses fell 4.1% year over year to $2,255 million.
Operating income in the reported quarter improved 8.9% from the prior-year quarter’s tally to $758 million.
Total interest charges and financing costs in the reported quarter rose 17.1% from the prior-year quarter’s figure to $192 million.
Outlook
Xcel Energy narrowed its 2019 earnings per share (EPS) guidance in the range of $2.60-$2.65 from its previous expectation of $2.55 -$2.65. The midpoint of the current guidance is $2.62, which is higher than the Zacks Consensus Estimate of $2.61.
The company reaffirmed long-term earnings growth in the range of 5-7% from a base of $2.60 (mid-point of the original 2019 guidance range) per share. Xcel Energy projects an annual increase in dividend rate by 5-7%.
The company provided 2020 EPS guidance in the range of $2.73-$2.83. The midpoint of this range is $2.78 which is lower than the Zacks Consensus Estimate of $2.79.
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.
Other Utility Releases
NextEra Energy, Inc (NEE - Free Report) reported third-quarter 2019 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.27 by 5.3%.
American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2019 adjusted earnings per share (EPS) of $1.46, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.
CMS Energy Corporation (CMS - Free Report) reported third-quarter 2019 EPS of 73 cents, up 23.7% from the year-ago quarter’s reported figure of 59 cents.
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Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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