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Why Is HEI (HE) Up 8.3% Since Last Earnings Report?

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It has been about a month since the last earnings report for Hawaiian Electric (HE - Free Report) . Shares have added about 8.3% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is HEI due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Hawaiian Electric's Q1 Earnings Down Y/Y, Revenues Up

Hawaiian Electric Industries Inc. reported earnings per share (EPS) of 31 cents in the first quarter of 2020, which declined 26.2% from 42 cents in the prior-year quarter.

Total Revenues

Hawaiian Electric’s total revenues of $677.2 million in the first quarter rose 2.4% from the prior-year quarter’s $661.6 million. The improvement can be attributed to increased contributions from the Electric Utility segment.

Operating Statistics

Total expenses grew 5.8% year over year to $617.5 million during the first quarter, led by an increase in expenses in both Electric Utility and Bank segments.

Hawaiian Electric’s total operating income declined 23.4% year over year to $59.7 million, driven by lower contributions from the Electric Utility and Bank segments.

Net interest expenses amounted to $21.8 million, down from $23.1 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues at this segment totaled $597.4 million, down 3.3% year over year. Also, net income declined to $44 million from $56.6 million a year ago.

Banking: At this segment, revenues summed $79.7 million, down 4% year over year. Meanwhile, net income declined to $19.4 million from $26.1 million a year ago.

Guidance

Hawaiian Electric reaffirmed its earnings guidance for 2020. The company continues to expect earnings in the range of $1.90-$2.10 per share. The Zacks Consensus Estimate for 2020 earnings is pegged at $1.88 per share, just below the company’s guided range.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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