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Xcel Energy (XEL) Q4 Earnings Meet Estimates, Revenues Beat

Zacks Equity Research

Xcel Energy Inc. XEL posted fourth-quarter 2018 operating earnings of 42 cents per share, in line with the Zacks Consensus Estimate.

For 2018, the company reported earnings of $2.47, up 9.8% from $2.25 in 2017.

The upside can be attributed to higher electric and natural gas revenues, courtesy of favorable weather, sales growth and higher Allowance for funds used during construction (AFUDC). However, these positive factors were partially offset by increased O&M, depreciation and interest expenses.

Xcel Energy Inc. Price, Consensus and EPS Surprise



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


Total Revenues

Xcel Energy’s fourth-quarter revenues of $2,880 million beat the Zacks Consensus Estimate of $2,863 million by 0.6%. Revenues rose 3% from the prior-year quarter’s tally of $2,796 million.

Xcel Energy’s total operating revenues for 2018 was $11,537 million, up 1.2% from $11,404 million in the year-ago quarter.

Segment Results

Electric: Revenues improved 2% to $2,300 million from $2,256 million in the last reported quarter.

Natural Gas:  Revenues improved 7.3% to $558 million from the year-ago quarter’s tally.

Other: Revenues in the segment amounted to $22 million in the quarter, up 10% from the year-ago quarter’s figure.

Quarterly Highlights

Total operating expenses increased 7.8% year over year to $2,541 million.

Operating income in the reported quarter declined 23.1% from the prior-year quarter’s tally to $339 million.

Total interest charges and financing costs in the reported quarter rose 4.5% from the prior-year quarter’s figure to $163 million.

Looking Ahead

Xcel Energy projects 2019 earnings per share guidance in the range of $2.55-$2.65 and long-term earnings growth in the band of 5-7% from a 2018 base of $2.43 (mid-point of the original 2018 guidance range) per share.

Xcel Energy projects an annual increase in dividend rate by 5 to 7%.

Zacks Rank

Xcel Energy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Utility Releases

NextEra Energy, Inc NEE reported fourth-quarter 2018 adjusted earnings of $1.49 per share, which lagged the Zacks Consensus Estimate of $1.51 by 1.3%.

American Electric Power Co., Inc AEP reported fourth-quarter 2018 operating earnings per share of 72 cents, in line with the Zacks Consensus Estimate.

Upcoming Releases

Dominion Energy D is scheduled to report fourth-quarter 2018 results on Feb 1. The Zacks Consensus Estimate is pegged at 91 cents.

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