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Xcel Energy (XEL) Q4 Earnings Beat Estimates, Revenues Miss

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Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.

For 2019, the company reported earnings of $2.64, up 6.8% from $2.47 in 2018.

The upside can be attributed to higher electric margins, courtesy of favorable non-fuel riders and regulatory rate outcomes as well as natural gas margins and lower O&M expenses. However, these factors were partially offset by lower AFUDC, increased depreciation and interest expenses.

Total Revenues

Xcel Energy’s fourth-quarter revenues of $2,798 million missed the Zacks Consensus Estimate of $3,178 million by 11.9%. Revenues fell 2.8% from the prior-year quarter’s tally of $2,880 million.

Xcel Energy’s total operating revenues for 2019 was $11,529 million, down 0.06% from $11,537 million in 2018.

Xcel Energy Inc. Price, Consensus and EPS Surprise

 

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 3% to $2,231 million from $2,300 million in the last reported quarter.

Natural Gas:  Revenues fell 2.5% to $544 million from the year-ago quarter’s tally.

Other: Revenues in the segment amounted to $23 million in the quarter, up by a penny from the year-ago quarter’s figure.

Quarterly Highlights

Total operating expenses fell 7.6% year over year to $2,348 million.

Operating income in the reported quarter increased 32.7% from the prior-year quarter’s tally to $450 million.

Total interest charges and financing costs in the reported quarter rose 13.5% from the prior-year quarter’s figure to $185 million.

Looking Ahead

Xcel Energy reaffirmed 2020 earnings per share guidance in the range of $2.73-$2.83 and long-term earnings growth in the band of 5-7% from a 2019 base of $2.60 (mid-point of the original 2019 guidance range) per share. The mid-point of the current earnings guidance range is $2.78, which is in line with the Zacks Consensus Estimate for 2020 earnings.

Xcel Energy projects an annual increase in dividend rate in the range of 5-7%.

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.

Utility Release

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

Upcoming Releases

Exelon Corp. (EXC - Free Report) is slated to report fourth-quarter 2019 results on Feb 11. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is pegged at 72 cents per share.

Dominion Energy (D - Free Report) is scheduled to report fourth-quarter 2019 results on Feb 11. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.16 cents per share.

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