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

Zacks Equity Research

Hawaiian Electric Industries Inc. HE 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.

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

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

Hawaiian Electric Industries, Inc. price-consensus-eps-surprise-chart | Hawaiian Electric Industries, Inc. Quote

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 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 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 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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