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Hawaiian Electric (HE) Q2 Earnings Miss, Revenues Up Y/Y

Hawaiian Electric Industries Inc. HE reported earnings per share (EPS) of 39 cents in the second quarter of 2019, which missed the Zacks Consensus Estimate of 44 cents by 11.4%. The bottom line also declined 7.1% from 42 cents in the prior-year quarter.

Total Revenues

Hawaiian Electric’s total revenues of $715.5 million in the second quarter outpaced the Zacks Consensus Estimate of $593 million by 20.7% and rose 4.4% year over year. The improvement can be attributed to increased contributions from both the Electric Utility and Bank segments.

Operating Statistics

Total expenses increased 6% year over year to $642.9 million during the second quarter.

Moreover, total operating income declined 7.8% year over year to $72.6 million, due to lower contributions from the Bank segment.

Net interest expenses amounted to $23.5 million, up from $22 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues at this segment totaled $633.8 million, up 4.2% year over year. Also, net income increased 1% to $55.7 million from $55.1 million a year ago.

Banking: At this segment, revenues summed $81.7 million, up 6% year over year. Meanwhile, net income came in at $21.3 million, down 21%.

Financial Position

Hawaiian Electric had cash and cash equivalents of $198.5 million as of Jun 30, 2019, compared with $169.2 million as of Dec 30, 2018.

Long-term debt, other than bank, was $1,884 million as of Jun 30, 2019, compared with $1,879.6 million as of Dec 31, 2018.

In the first half of 2019, net cash inflow from operating activities totaled $133.4 million compared to the cash inflow of $108.3 million in the first half of 2018.

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

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

Hawaiian Electric Industries, Inc. price-consensus-eps-surprise-chart | Hawaiian Electric Industries, Inc. Quote

Guidance

Hawaiian Electric reaffirmed its earnings guidance for 2019. The company continues to expect earnings of $1.85-$2.05 per share. The Zacks Consensus Estimate for 2019 earnings is pegged at $1.95, which lies at the midpoint of the company’s guided range.

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.

Recent Utility Releases

American Electric Power Co., Inc. AEP, a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of $1.00, surpassing the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy NEE, a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings of $2.35 per share, beating the Zacks Consensus Estimate of $2.28 by 3.1%. Moreover, earnings were up 12.9% on a year-over-year basis.

CMS Energy Corporation CMS, a Zacks Rank #3 stock, reported second-quarter 2019 adjusted earnings per share of 33 cents, down 32.7% year over year. The bottom line also missed the Zacks Consensus Estimate of 44 cents by 25%.

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