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Hawaiian Electric (HE) Q4 Earnings Fall Y/Y, Stock Declines

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Shares of Hawaiian Electric Industries Inc. (HE - Free Report) decline 0.3% to reach $34.64 on Feb 17, reflecting investors’ skepticism following the company's fourth-quarter results.

The company reported earnings per share of 46 cents in the fourth quarter of 2020, which declined 24.6% from 61 cents in the prior-year quarter.

In 2020, the company reported earnings per share of $1.81, which dropped 9% from the year-ago earnings of $1.99.

Total Revenues

Hawaiian Electric’s total revenues of $652.2 million in the fourth quarter declined 10.2% from the prior-year quarter’s $770.9 million. The decline in revenues can be attributed to decreased contributions from both the
Electric Utility and Bank segments.

In 2020, the company generated total revenues of $2,265.3 million, which fell 11% from the year-ago tally.

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

Operating Statistics

Total expenses declined 8.6% year over year to $571.5 million during the fourth quarter. The decline can be attributed to lower expenses in the Electric Utility segment.

Total operating income declined 19.9% year over year to $80.7 million in the fourth quarter due to lower contributions from the Electric Utility and Bank segment.

Net interest expenses during the quarter amounted to $22.2 million, slightly up from $21.8 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues in this segment totaled $571.1 million, down 11.5% year over year. Meanwhile, net income declined 2.9% to $68.2 million from $70.3 million a year ago.

Banking: In this segment, revenues totaled $80.4 million, down 0.3% year over year. Meanwhile, net income came in at $18.4 million, plunging 47.7% year over year.

Guidance 2021

Hawaiian Electric has reaffirmed its earnings guidance for the Electric Utility unit in the range of $1.53-$1.61 per share for 2021.

Zacks Rank

Hawaiian Electric currently 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

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, in line with the Zacks Consensus Estimate.

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2020 adjusted earnings per share of 56 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 1.8%.

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