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Xcel Energy (XEL) Misses on Q1 Earnings, Keeps 2017 View

Zacks Equity Research

Minneapolis-based Xcel Energy Inc. XEL recorded first-quarter 2017 operating earnings of 47 cents per share, lagging the Zacks Consensus Estimate of 50 cents by 6%. The earnings were in line with the year-ago quarter.

 


Despite the impact of unfavorable warmer winter temperatures, the company was able to match the year-ago results due to higher electric and natural gas margins and a lower effective tax rate.

Total Revenue

Xcel Energy’s first-quarter revenues of $2,946.4 million surpassed the Zacks Consensus Estimate of $2,908 million by 1.32% and the prior-year quarter level of $2,772.3 million by 6.3%.

Segment Results

Electric: Segment revenues increased from $2,185.2 million to $2,299.1 million in the reported quarter.

Natural Gas: Quarterly revenues grew 10.6% to $625.7 million.

Other: The segment  recorded revenues of $21.6 million in the quarter, up 0.9%.

Xcel Energy Inc. Price, Consensus and EPS Surprise

 

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

Quarterly Highlights

Total operating expenses increased 7.8% year over year to $2,460.2 million. Costs increased primarily due to higher electric fuel and purchased power.

Operating income in the reported quarter was down 0.8% year over year to $486.3 million.

Financial Highlights

Total debt as of Mar 31, 2017 was $15 billion, out of which long-term debt comprised $13.7 billion.

Looking Ahead

Xcel Energy has reiterated its 2017 operating earnings guidance in the range of $2.25–$2.35 per share.

The company projects a long-term annual earnings growth rate of 4–6%.

Zacks Rank

Xcel Energy carries a Zacks Rank #4 (Sell).

Peer Releases

NextEra Energy, Inc. NEE, a Zacks Rank #3 (Hold) stock,  reported first-quarter 2017 adjusted earnings of $1.75 per share, beating the Zacks Consensus Estimate of $1.56 by 12.2%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DTE Energy DTE, another Zacks Rank #3 stock,  reported first-quarter 2017 earnings of $1.79 per share, beating the Zacks Consensus Estimate of $1.57 by 14%.

Entergy Corporation ETR, also a Zacks Rank #3 stock, reported first-quarter 2017 operational earnings of 99 cents per share, lagging the Zacks Consensus Estimate of $1.06 by 6.6%.

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Xcel Energy Inc. (XEL): Free Stock Analysis Report
 
NextEra Energy, Inc. (NEE): Free Stock Analysis Report
 
Entergy Corporation (ETR): Free Stock Analysis Report
 
DTE Energy Company (DTE): Free Stock Analysis Report
 
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