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Xcel Energy (XEL) Q2 Earnings and Revenues Lag Estimates

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Xcel Energy Inc. (XEL - Free Report) reported second-quarter 2024 operating earnings of 54 cents per share, which lagged the Zacks Consensus Estimate of 55 cents by 1%. The bottom line increased 3.8% from the year-ago quarter’s 52 cents.

It reported GAAP earnings of 54 cents in the second quarter compared with 52 cents in the year-ago quarter.

Total Revenues

The company’s revenues of $3.03 billion missed the Zacks Consensus Estimate of $3.28 billion by 7.8%. The figure improved 0.2% from the year-ago quarter’s $3.02 billion.

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. Price, Consensus and EPS Surprise

Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote

Segmental Results

Electric: This segment’s revenues totaled $2.65 billion, up 2.2% from $2.6 billion in the year-ago quarter.

Natural Gas: Revenues in this segment declined 9.7% to $0.35 billion from $0.39 billion in the year-ago quarter.

Other: This segment’s revenues were $14 million compared with $28 million from the prior-year actual.

Highlights of the Release

Total operating expenses declined 0.9% year over year to $2.58 billion. This can be attributed to lower electric fuel and purchased power costs and the cost of natural gas sold and transported.

Operating income increased 7.4% year over year to $449 million.

Total interest charges and financing costs rose 18.4% to $303 million from the prior-year quarter’s reported figure of $256 million.

In the reported quarter, Xcel Energy registered 1.2% growth in electric customer volume and a 1% increase in natural gas’ customer volume. In the same time frame, natural gas sales increased 0.4% from the year-ago period, while electric sales volume dropped 0.4%.

Guidance

Xcel Energy reaffirmed 2024 earnings per share in the range of $3.50- $3.60. The Zacks Consensus Estimate is pegged at $3.55, in line with the midpoint of the guided range.

The company estimates retail electric sales to increase by 1% in 2024, while natural gas sales volumes are anticipated to remain flat from the year-ago level.  

Xcel Energy plans to invest $39 billion in 2024-2028 to further strengthen its infrastructure and $7.42 billion in 2024.

Zacks Rank

XEL currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

NextEra Energy, Inc. (NEE - Free Report) reported second-quarter 2024 adjusted earnings of 96 cents per share, which beat the Zacks Consensus Estimate of 93 cents by 3.2%.

NEE’s long-term (three-to-five years) earnings growth rate is 8.12%. It delivered an average earnings surprise of 8.1% in each of the last four quarters.

American Electric Power Company, Inc. (AEP - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.25, which beat the Zacks Consensus Estimate of $1.23 by 1.6%.

AEP’s long-term earnings growth rate is 6.22%. It delivered an earnings surprise of 1.63% in the last reported quarter.

DTE Energy Company (DTE - Free Report) reported second-quarter 2024 operating earnings per share of $1.43, which beat the Zacks Consensus Estimate of $1.18 by 21.2%.

DTE’s long-term earnings growth rate is 8.14%. The company delivered an average earnings surprise of 0.77% in each of the last four quarters.

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