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Xcel Energy's (XEL) Q2 Earnings & Revenues Miss Estimates

Zacks Equity Research

Xcel Energy Inc. XEL posted second-quarter 2019 operating earnings of 46 cents per share, which lagged the Zacks Consensus Estimate of 53 cents by 13.21%.

Second quarter earnings gained from higher electric and natural gas margins courtesy of non-fuel riders and regulatory rate outcomes. However, these factors were offset by unfavorable weather, increased depreciation, interest and operating as well as maintenance expenses.

Total Revenues

Xcel Energy’s second-quarter revenues amounted to $2,577 million, which missed the Zacks Consensus Estimate of $2,778 million by 7.22%. The figure also declined 3% from the prior-year quarter’s tally of $2,658 million. Lower Electric revenues hurt the quarterly outcome.

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote

 

Segment Results

Electric: Revenues declined 4.2% to $2,249 million from $2,348 million in the last reported quarter.

Natural Gas: Revenues improved 5.5% to $308 million from the year-ago quarter’s tally.

Other: Revenues in the segment amounted to $20 million in the quarter, up 11.1% from the year-ago quarter’s figure.

Quarterly Highlights

Total operating expenses dipped 1.8% year over year to $2,167 million.

Operating income in the reported quarter fell 8.9% from the prior-year quarter’s tally to $410 million.

Total interest charges and financing costs in the reported quarter rose 9.1% 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 #4 (Sell).

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

Other Utility Releases

American Electric Power Co., Inc AEP reported second-quarter 2019 adjusted EPS of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy NEE reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%.

CMS Energy Corp. CMS reported second-quarter 2019 adjusted EPS of 33 cents, which missed the Zacks Consensus Estimate of 44 cents by 25%.

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