Hawaiian Electric (HE) Beats on Q4 Earnings, Issues '18 View

Hawaiian Electric Industries HE reported adjusted earnings per share (EPS) of 43 cents in fourth-quarter 2017, which surpassed the Zacks Consensus Estimate of 41 cents by 4.9%. On a year-over-year basis, adjusted earnings improved 4.9% from the prior-year quarter’s 41 cents.

GAAP earnings were 30 cents in the quarter, reflecting a 26.8% decline from the year-ago 41 cents.

 

Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise

 

Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise | Hawaiian Electric Industries, Inc. Quote

 

For 2017, the company reported EPS of $1.65, which surpassed the Zacks Consensus Estimate by a penny. On a year-over-year basis, adjusted earnings declined 5.7% from the prior-year level of $1.75.

Total Revenues

Total revenues of $658.6 million surpassed the Zacks Consensus Estimate of $620 million by 6.2% and were also up 6.7% year over year. The top line improved on higher contributions from all three segments of the company.

Operating Statistics

Total expenses were up 8.4% year over year to $573.6 million in the fourth quarter.

Total operating income was $85 million, down 3.9% due to lower contributions from the Bank as well as Electric Utility segments.

Net interest expenses amounted to $19.7 million, up from $19 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues in the reported quarter were $583.3 million, up 7.1% year over year. Net income dropped 25.7% to $25.4 million from $34.1 million a year ago.

Banking: Revenues were $75.2 million, up 3.5%. Net income came in at $16.9 million, up 4%.

Other: Revenues were $0.1 million, up 20% year over year. However, it incurred a quarterly net loss of approximately $9.8 million compared with the year-ago loss of $5.7 million.

Guidance

Hawaiian Electric issued its 2018 guidance. The company expects EPS in the range of $1.80-$2.00.

Moreover, for the Electric Utility segment, it projects EPS in the band of $1.33-$1.46, while the same for the Bank segment is in the range of 68-74 cents.

Zacks Rank

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

Peer Releases

CMS Energy CMS reported fourth-quarter 2017 adjusted earnings per share of 51 cents, which were in line with the Zacks Consensus Estimate.

NextEra Energy NEE posted fourth-quarter 2017 adjusted earnings of $1.25 per share, lagging the Zacks Consensus Estimate of $1.31 by 4.6%.

Dominion Energy D reported fourth-quarter 2017 operating earnings of 91 cents per share, beating the Zacks Consensus Estimate of 88 cents by 3.4%.

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