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Hawaiian Electric (HE) Beats on Q2 Earnings, Keeps View
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Hawaiian Electric Industries Inc. (HE - Free Report) reported adjusted earnings of 43 cents per share in the second quarter of 2016, beating the Zacks Consensus Estimate of 41 cents. Earnings increased 10.3% from the year-ago adjusted number of 39 cents per share.
Total revenue in the reported quarter was $566.2 million, down 9.2% year over year. The top line declined primarily due to lower contribution from Electric Utility, partially offset by higher contribution from Bank and Other.
Notably, NextEra Energy, Inc. (NEE - Free Report) and Hawaiian Electric Industries, Inc. announced the termination of their plans to merge on Jul 18, 2016. This was because of Hawaii Public Utilities Commission's (PUC) order to dismiss the companies' merger application.
Operating Statistics
Total expenses were down 12.8% year over year to $480.8 million. Total operating income was $85.5 million, up 17.6% mainly due to higher contributions from Electric Utility and Bank. Interest expenses amounted to $17.3 million, down from $18.9 million in the prior-year quarter.
Segment Details
Electric Utility: Segment revenues in the reported quarter were $495.4 million, down 11.3% year over year. Net income, however, increased 9.5% to $35.9 million from $32.8 million a year ago. The upside resulted primarily from the recovery of costs for clean energy and reliability investments.
Banking: Segment revenues in the reported quarter were $70.7 million, up 7.4%. Net income came in at $13.3 million, up 3.1%.
Other: The segment reported a quarterly net loss of approximately $5 million, narrower than the year-ago loss of about $10.7 million.
Financial Update
Cash and cash equivalents as of Jun 30, 2016, were $257.2 million, down from $300.5 million as of Dec 31, 2015. Long-term debt, net other than bank, was $1,578.8 million, almost flat with $1,578.4 million at 2015 end.
Guidance
Hawaiian Electric reaffirmed the 2016 adjusted earnings per share guidance in the range of $1.62–$1.75.
The company continues to expect 2016 utility earnings in the range of $1.28 to $1.36 per share and bank earnings in the range of 50 cents to 54 cents per share.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%. Earnings also declined 27.5% from 91 cents per share reported in the year-ago quarter.
Zacks Rank
Hawaiian Electric currently carries a Zacks Rank #3 (Hold).
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Hawaiian Electric (HE) Beats on Q2 Earnings, Keeps View
Hawaiian Electric Industries Inc. (HE - Free Report) reported adjusted earnings of 43 cents per share in the second quarter of 2016, beating the Zacks Consensus Estimate of 41 cents. Earnings increased 10.3% from the year-ago adjusted number of 39 cents per share.
Total revenue in the reported quarter was $566.2 million, down 9.2% year over year. The top line declined primarily due to lower contribution from Electric Utility, partially offset by higher contribution from Bank and Other.
Notably, NextEra Energy, Inc. (NEE - Free Report) and Hawaiian Electric Industries, Inc. announced the termination of their plans to merge on Jul 18, 2016. This was because of Hawaii Public Utilities Commission's (PUC) order to dismiss the companies' merger application.
Operating Statistics
Total expenses were down 12.8% year over year to $480.8 million. Total operating income was $85.5 million, up 17.6% mainly due to higher contributions from Electric Utility and Bank. Interest expenses amounted to $17.3 million, down from $18.9 million in the prior-year quarter.
Segment Details
Electric Utility: Segment revenues in the reported quarter were $495.4 million, down 11.3% year over year. Net income, however, increased 9.5% to $35.9 million from $32.8 million a year ago. The upside resulted primarily from the recovery of costs for clean energy and reliability investments.
Banking: Segment revenues in the reported quarter were $70.7 million, up 7.4%. Net income came in at $13.3 million, up 3.1%.
Other: The segment reported a quarterly net loss of approximately $5 million, narrower than the year-ago loss of about $10.7 million.
Financial Update
Cash and cash equivalents as of Jun 30, 2016, were $257.2 million, down from $300.5 million as of Dec 31, 2015. Long-term debt, net other than bank, was $1,578.8 million, almost flat with $1,578.4 million at 2015 end.
Guidance
Hawaiian Electric reaffirmed the 2016 adjusted earnings per share guidance in the range of $1.62–$1.75.
The company continues to expect 2016 utility earnings in the range of $1.28 to $1.36 per share and bank earnings in the range of 50 cents to 54 cents per share.
Peer Releases
DTE Energy Company (DTE - Free Report) reported second-quarter 2016 operating earnings per share of 98 cents, beating the Zacks Consensus Estimate of 90 cents by 8.9%. Reported earnings were also up 28.9% from the year-ago figure of 76 cents.
PG&E Corporation’s (PCG - Free Report) adjusted operating earnings per share of 66 cents in the second quarter of 2016 lagged the Zacks Consensus Estimate of 94 cents by 29.8%. Earnings also declined 27.5% from 91 cents per share reported in the year-ago quarter.
Zacks Rank
Hawaiian Electric currently carries a Zacks Rank #3 (Hold).
HAWAIIAN ELEC Price, Consensus and EPS Surprise
HAWAIIAN ELEC Price, Consensus and EPS Surprise | HAWAIIAN ELEC Quote
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