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HEI (HE) Down 2.1% Since Last Earnings Report: Can It Rebound?

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It has been about a month since the last earnings report for Hawaiian Electric (HE - Free Report) . Shares have lost about 2.1% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is HEI due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Hawaiian Electric's Q2 Earnings & Revenues Decline Y/Y

Hawaiian Electric Industries reported earnings per share of 45 cents in the second quarter of 2020, which increased 15.4% from 39 cents in the prior-year quarter.

Total Revenues

Hawaiian Electric’s total revenues of $608.9 million in the second quarter declined 14.9% from the prior-year quarter’s $715.5 million. The decline in revenues can be attributed to decreased contributions from the Electric Utility and Bank segment.

Operating Statistics

Total expenses declined 16.4% year over year to $537.4 million during the second quarter. The decline can be attributed to lower expenses at the Electric Utility segment.

Total operating income declined 1.4% year over year to $71.6 million in the second quarter due to lower contributions from the Bank segment.

Net interest expenses amounted to $22.6 million, down from $23.5 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues in this segment totaled $534.2 million, down 15.7% year over year. Also, net income increased 21.7% to $67.8 million from $55.7 million a year ago.

Banking: In this segment, revenues summed $74.7 million, down 8.5% year over year. Meanwhile, net income came in at $8.5 million, plunging 60% year over year.

Financial Position

Hawaiian Electric had cash and cash equivalents of $574.8 million as of Jun 30, 2020, compared with $196.8 million as of Dec 30, 2019.

Long-term debt was $2,070.2 million as of Jun 30, 2020, compared with $1,964.4 million as of Dec 31, 2019.

In the first half of 2020, net cash inflow from operating activities totaled $197.4 million compared to the cash inflow of $133.4 million in the first half of 2019.

Guidance

Hawaiian Electric is currently providing full-year bank provision guidance, given the uncertainty regarding the impacts of COVID-19.


 

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.


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