Xcel Energy Inc
) recorded operating earnings in the second quarter 2014 of 39
cents per share, lagging the year-ago earnings by a penny and also
falling short of the Zacks Consensus Estimate of 41 cents by nearly
Xcel Energy's total revenue increased 4.1% year over year to
$2,685.1 million in the reported quarter. The year-over-year upturn
was due to encouraging electric and natural gas returns primarily
due to the implementation of new rates in various jurisdictions.
Quarterly revenue also outpaced the Zacks Consensus Estimate of
$2,626 million by 2.2%.
: Revenue from this segment was up 3.5% year over year to $2,298
: Revenue from the Natural Gas business registered an 8.2% increase
to $369.7 million.
Segment revenue of $18.3 million in the reported quarter increased
3.5% from $17.7 million in the year-ago period.
Total operating expenses climbed 5.1% year over year to $2,287.9
million. The escalating costs can be attributed to an 11.7% rise in
cost of natural gas sold and transported, compounded by a nearly 3%
rise in electric fuel and purchased power costs.
Operating income was down 1.2% year over year to $397.2 million as
the revenue increase was outweighed by spiraling costs.
Total interest charges and financing costs, after Allowance for
funds used during construction ("AFUDC"), decreased 5.3% year over
year at the end of the second quarter 2014 to $129.3 million.
Total debts as of Jun 30, 2014, were $12.6 billion out of which
long-term debt was $11.8 billion.
In May 2014, Xcel Energy issued $300 million, 4.125% first mortgage
bonds due May 15, 2044. In Jun 2014, Xcel Energy issued $150
million, 3.30% first mortgage bonds due Jun 15, 2044. Again, in Jun
2014, Xcel Energy sold $100 million, 3.30% first mortgage bonds due
Jun 15, 2044.
Xcel Energy reiterated its 2014 earnings guidance in the range
$1.90 to $2.05 per share. Operations and maintenance expenses are
expected to increase 2-3% from the 2013 level.
Other Company Releases
NextEra Energy Inc.
) posted adjusted earnings of $1.43 per share in the second
quarter, missing the Zacks Consensus Estimate of $1.45 per share by
CMS Energy Corporation
) posted second-quarter 2014 earnings per share of 30 cents,
beating the Zacks Consensus Estimate of 26 cents by 15.4%.
) reported second quarter 2014 earnings of 25 cents per share, in
line with the Zacks Consensus Estimate
Xcel Energy missed our earnings estimates as rising expenses
completely offset the benefit derived from the new rates.
During the quarter the company filed rate cases in Colorado,
Wisconsin and South Dakota. Earlier Xcel Energy had received
constructive rate outcomes in the North Dakota and New Mexico
service territories. The earnings guidance for 2014, reflecting a
2% to 3% year-over-year increase, also assumes constructive
outcomes from the regulatory proceedings.
Since a degree of uncertainty is associated with regulatory rate
cases, any adverse outcome might restrain the company from
achieving its guidance.
Xcel Energy currently carries a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
XCEL ENERGY INC (XEL): Free Stock Analysis
CMS ENERGY (CMS): Free Stock Analysis Report
NEXTERA ENERGY (NEE): Free Stock Analysis
NISOURCE INC (NI): Free Stock Analysis Report
To read this article on Zacks.com click here.