Xcel Energy posts higher Q3 profit on lower operating expenses
Oct 27 (Reuters) - Xcel Energy posted a rise in third-quarter profit on Friday, as the utility firm benefited from lower operating expenses.
Xcel said net income inched up to $656 million, or $1.19 per share, for the July-September quarter, from $649 million, or $1.18 per share, in the year-ago quarter.
The company posted a 13% decline in operating expenses to $2.75 billion in the three months ended Sept. 30.
Peer CMS Energy also posted a rise in third-quarter profit as utility companies take cost-cutting measures to counter inflation and rising interest rates.
Xcel, however, posted an adjusted income of $1.23 per share, missing analysts' average estimate of $1.27, according to LSEG data.
The U.S. Federal Reserve's interest rate hikes to tame inflation have made borrowing more expensive for businesses.
Xcel's interest charges and financing costs rose 7.6% to $255 million.
Xcel also narrowed its annual earnings forecast to the range of $3.32 to $3.37 per share from $3.30 to $3.40, while analysts were expecting $3.36 per share. (Reporting by Tanay Dhumal in Bengaluru)
