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Hawaiian Electric (HE) Q2 Earnings Lag Estimates, Sales Up Y/Y

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Shares of Hawaiian Electric Industries, Inc. (HE - Free Report) have improved 0.1% following the company’s second-quarter 2022 results, reflecting investors’ optimism about the outcome.

The company reported earnings per share (EPS) of 48 cents for the second quarter of 2022, which lagged the Zacks Consensus Estimate of 52 cents by 7.7%.

The bottom line also declined 17.2% from 58 cents per share in the prior-year quarter, primarily due to the prior year's negative provision for credit losses at American Savings Bank and a return to a more normalized provision expense due to strong loan growth.

Total Revenues

Hawaiian Electric’s total revenues of $895.6 million in the second quarter improved 31.7% from the prior-year quarter’s $680.3 million. The rise in revenues can be attributed to increased contributions from the Electric Utility and Other segments.

Segment Details

Electric Utility: Revenues in this segment totaled $818.9 million, up 36.1% year over year.

Banking: In this segment, revenues totaled $75.3 million, down 2.5% year over year.

Others: Revenues from other sources surged 26.1% to $1,410 million from $1,118 million in the year-ago quarter.

Operating Statistics

Total expenses increased 39.9% year over year to $808.9 million in the second quarter. The increase can be attributed to higher expenses in the Electric Utility and Bank segments and Other segments.

The total operating income declined 14.9% year over year to $86.7 million in the second quarter.

Net interest expenses during the quarter amounted to $24.9 million, up 7.1% from $23.3 million in the prior-year quarter.

2022 Guidance

Hawaiian Electric reiterated its 2022 EPS guidance in the range of $2.00-$2.20. The Zacks Consensus Estimate for earnings, pegged at $2.19, lies at the higher end of the company’s guided range.

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.

Utility Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2022 adjusted earnings of 81 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 8%. The bottom line was also up 14.1% from the prior-year quarter.

For the second quarter, NextEra’s operating revenues were $5,183 million, which lagged the Zacks Consensus Estimate of $5,681 million by 8.8%. However, NEE’s top line improved 31.9% year over year.

American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2022 operating EPS of $1.20, which beat the Zacks Consensus Estimate of $1.18 by 1.7%. The bottom line also improved 1.7% from $1.18 per share in the year-ago quarter.

American Electric’s second-quarter revenues of $4,593.8 million beat the Zacks Consensus Estimate of $4,191.2 million by 9.6%. AEP expects 2022 operating earnings in the range of $4.87-$5.07 per share.

DTE Energy Company (DTE - Free Report) reported second-quarter 2022 operating EPS of 88 cents, which missed the Zacks Consensus Estimate of $1.00 by 12%. The bottom line also decreased 27.9% from the year-ago quarter’s $1.22 per share.

The operating net income in the reported quarter totaled $171 million compared with $235 million in the year-ago quarter. DTE increased its 2022 operating EPS guidance range from $5.80-$6.00 to the $5.90-$6.10 range.


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