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HEI (HE) Up 6.7% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Hawaiian Electric (HE - Free Report) . Shares have added about 6.7% in that time frame, outperforming the S&P 500.

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

Hawaiian Electric Q3 Earnings Beat, Sales Rise Y/Y

Hawaiian Electric reported earnings per share (EPS) of 57 cents for the third quarter of 2022, which surpassed the Zacks Consensus Estimate of 54 cents by 5.6%. The bottom line however declined 1.7% from 58 cents per share in the prior-year quarter.

Total Revenues

Hawaiian Electric’s total revenues of $1,042.2 million in the third quarter improved 37.7% from the prior-year quarter’s $756.9 million. The rise in revenues can be attributed to increased contributions from the Electric Utility, Bank as well as Other segments.

Segment Details

Electric Utility: Revenues in this segment totaled $956 million, up 40.7% year over year.

Banking: In this segment, revenues totaled $81.4 million, up 6.8% year over year.

Others: Revenues from other sources surged a havoc 302.3% to $4,815 million from $1,197 million in the year-ago quarter.

Operating Statistics

Total expenses increased 42.5% year over year to $940.1 million in the third quarter. The increase can be attributed to higher expenses in the Electric Utility, Bank as well as Other segments.

The total operating income also improved 4.9% year over year to $102.1 million in the third quarter.

Net interest expenses during the quarter amounted to $26.6 million, up 13.4% from $23.5 million in the prior-year quarter.

2022 Guidance

Hawaiian Electric raised the lower end of its 2022 EPS guidance. The company currently expects to generate EPS in the range of $2.08-$2.20 compared with the earlier outlook of $2.00-$2.20. The Zacks Consensus Estimate for earnings, pegged at $2.13, lies just below the mid-point of the company’s newly guided range.

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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