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Xcel Energy (XEL) Lags on Q3 Earnings & Sales, Narrows View

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Xcel Energy (XEL) Lags on Q3 Earnings & Sales, Narrows View

Xcel Energy's (XEL) Q3 earnings hurt by higher operating expenses and interest expenses.

Xcel Energy Inc. XEL reported third-quarter 2018 operating earnings of 96 cents per share, missing the Zacks Consensus Estimate of 98 cents by 2.0%. Also, the bottom line declined 1.0% from the year-ago quarter’s tally.

The year-over-year fall in earnings was primarily caused by higher electric fuel and purchased power expenses along with increased operating and maintenance expenses.

Total Revenues

Xcel Energy’s third-quarter revenues of $3,048 million missed the Zacks Consensus Estimate of $3,083 million by 1.1%. Revenues inched up 1.0% from the prior-year quarter’s tally of $3,017 million.

Xcel Energy Inc. Price, Consensus and EPS Surprise

 

Xcel Energy Inc. Price, Consensus and EPS Surprise | Xcel Energy Inc. Quote

 

Segment Results

Electric: Revenues inched up 0.6% to $2,802 million from $2,784 million in the last reported quarter.

Natural Gas: Quarterly revenues improved 6.0% to $227 million from the year-ago quarter’s tally.

Other: Revenues in the segment amounted to $19 million in the quarter, in line with the year-ago quarter’s figure.

Quarterly Highlights

Total operating expenses increased 7.2% year over year to $2,352 million.

Operating income in the reported quarter declined 15.5% from the prior-year quarter’s tally to $696 million.

Total interest charges and financing costs in the reported quarter rose 4.5% from the prior-year quarter’s figure to $164 million.

Looking Ahead

Xcel Energy narrowed 2018 earnings per share (EPS) guidance in the range of $2.45-$2.49, from the previous expectation of $2.41-$2.51.

The company projects 2019 EPS in the range of $2.55-$2.65 and raised long-term earnings growth to 5-7% from 5-6%.

Zacks Rank

Xcel Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

NextEra Energy NEE reported third-quarter 2018 adjusted earnings of $2.18 per share, beating the Zacks Consensus Estimate of $2.17 by 0.46%.

DTE Energy Company DTE reported third-quarter 2018 operating EPS of $2.13, which outpaced the Zacks Consensus Estimate of $1.74 by 22.4%.

Upcoming Utility Release

Dominion Energy Inc D is expected to release third-quarter results on Nov 1. It has an Earnings ESP of +1.39% and a Zacks Rank #2.

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NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
 
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