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Xcel Energy's (XEL) Earnings Meet Estimates in Q1, Up Y/Y

Zacks Equity Research

Xcel Energy Inc.XEL posted first-quarter 2019 operating earnings of 61 cents per share, in line with the Zacks Consensus Estimate. Also, the bottom line improved 7% year over year.

The upside can be attributed to higher electric and natural gas margin, courtesy of regulatory rate outcomes and favorable weather. However, these factors were partially offset by higher depreciation, operating and maintenance as well as interest expenses.

Total Revenues

Xcel Energy’s first-quarter revenues of $3,141 million beat the Zacks Consensus Estimate of $3,071 million by 2.3%. The figure rose 6.4% from the prior-year quarter’s tally of $2,951 million. Strong segmental performances drove the company’s total revenues.

Xcel Energy Inc. Price, Consensus and EPS Surprise

 

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

 

Segment Results

Electric: Revenues improved 2.4% to $2,325 million from $2,270 million in the last reported quarter.

Natural Gas:  Revenues improved 20% to $794 million from the year-ago quarter’s tally.

Other: Revenues in the segment amounted to $22 million in the quarter, up 15.8% from the year-ago quarter’s figure.

Quarterly Highlights

Total operating expenses increased 7.4% year over year to $2,655 million.

Operating income in the reported quarter inched up 1.2% from the prior-year quarter’s tally to $486 million.

Total interest charges and financing costs in the reported quarter rose 11.8% from the prior-year quarter’s figure to $179 million.

Outlook

Xcel Energy reaffirmed 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 base of $2.43 (mid-point of the original 2018 guidance range) per share.

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

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.

Other Utility Releases

DTE Energy Company DTE delivered first-quarter 2019 operating earnings per share of $2.05, which beat the Zacks Consensus Estimate of $1.95 by 5.1%

NextEra Energy, Inc NEE generated first-quarter 2019 adjusted earnings of $2.20 per share, which beat the Zacks Consensus Estimate of $2.01 by 9.4%.

FirstEnergy Corporation FE delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

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