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Hawaiian Electric (HE) Q3 Earnings Match Estimates, Fall Y/Y

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Hawaiian Electric Industries Inc. (HE - Free Report) reported earnings per share (EPS) of 58 cents in the third quarter of 2019, which came in line with the Zacks Consensus Estimate. The bottom line declined 3.3% from 60 cents in the prior-year quarter.

The year-over-year downside in earnings can be attributed to higher expenses incurred in the reported quarter.

Total Revenues

Hawaiian Electric’s total revenues of $771.5 million in the third quarter surpassed the Zacks Consensus Estimate of $771 million by 0.01%. The top line rose 0.5% year over year. The improvement can be attributed to increased contributions from both the Electric Utility and Bank segments.
Operating Statistics

Total expenses increased 0.6% year over year to $674.2 million during the third quarter.

Total operating income declined 0.8% year over year to $97.3 million due to lower contributions from the Electric Utility segment.

Net interest expenses amounted to $22.4 million, up from $22.5 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues at this segment totaled $688.3 million, up a mere 0.1% year over year. Also, net income decreased 5.9% to $46.8 million from $49.7 million a year ago.

Banking: At this segment, revenues totaled $83.2 million, up 3.4% year over year. Net income came in at $22.8 million, up 7.9%.

Financial Position

Hawaiian Electric had cash and cash equivalents of $177 million as of Sep 30, 2019, compared with $169.2 million as of Dec 30, 2018.

Long-term debt, other than bank, was $1,885.5 million as of Sep 30, 2019, compared with $1,879.6 million as of Dec 31, 2018.

In the first nine months of 2019, net cash inflow from operating activities totaled $341.4 million compared with cash inflow of $257.7 million in the first nine months of 2018.

Guidance

Hawaiian Electric reaffirmed its earnings guidance for 2019. The company continues to expect earnings of $1.85-$2.05 per share. The Zacks Consensus Estimate for 2019 earnings is pegged at $1.88, which lies below the midpoint of the company guided range.
Zacks Rank
 
Hawaiian Electric carries a Zacks Rank #4 (Sell).

Recent Utility Releases

NextEra Energy (NEE - Free Report) reported third-quarter 2019 adjusted earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.27 by 5.3%. Moreover, earnings were up 10.1% on a year-over-year basis. It carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Xcel Energy (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. It carries a Zacks Rank #3.

American Electric Power Co., Inc. (AEP - Free Report) reported third-quarter 2019 adjusted earnings per share of $1.46, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%. It carries a Zacks Rank #3.

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