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Hawaiian Electric (HE) Q4 Earnings Miss, Expenses Drop Y/Y
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Hawaiian Electric Industries Inc. (HE - Free Report) reported adjusted earnings per share (EPS) of 41 cents in the fourth quarter of 2016, which missed the Zacks Consensus Estimate by a penny. On a year-over-year basis, the figure was in line with the prior-year quarter level.
For 2016, the company reported adjusted EPS of $1.75, which was in line with the Zacks Consensus Estimate. Year over year, this figure improved 6.1% from $1.65 in 2015.
Total Revenue
Hawaiian Electric’s total revenue of $617.4 million in the reported quarter also missed the Zacks Consensus Estimate of $628 million by 1.7% and was down 1.1% year over year. The top line declined primarily due to lower contributions from Electric Utility, partially offset by higher contributions from Bank and Other.
For 2016, the company generated total revenue of $2.38 billion, which again missed the Zacks Consensus Estimate of $2.62 billion by 9.2%. The revenue figure also declined 8.5% from $2.60 billion in 2015.
Operating Statistics
Total expenses were down 2.2% year over year to $528 million during the fourth quarter. Meanwhile, total operating income was $88.4 million, up 8.3% mainly on higher contributions from Electric Utility and Bank. Interest expenses amounted to $19 million, down from $19.9 million in the prior-year quarter.
Segment Details
Electric Utility: Segment revenues in the reported quarter were $544.7 million, down 1.9% year over year. Net income, however, increased 3.4% to $34.1 million from $33 million a year ago.
Banking: Segment revenues in the reported quarter were $72.6 million, up 6%. Net income came in at $16.2 million, up 8.5%.
Other: Segment revenues in the reported quarter were $100 million, up 14.9% year over year. The segment reported a quarterly net loss of approximately $5.7 million, compared with the year-ago loss figure of about $5.6 million.
Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise
Cash and cash equivalents as of Dec 31, 2016, were $278.5 million, down from $300.5 million as of Dec 31, 2015. Long-term debt, net other than bank, at the end of 2016 was $1,619 million, up from $1,578.4 million at 2015-end.
Guidance
Hawaiian Electric currently expects its 2017 adjusted EPS in the range of $1.55–$1.70, with EPS in the Electric Utility segment expected in the band of $1.17–$1.27 and that at the Banking segment in the range of 53–56 cents.
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2016 operating EPS of 67 cents, beating the Zacks Consensus Estimate of 55 cents by 21.8%.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2016 adjusted EPS of $1.21, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2016 adjusted EPS of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.
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Hawaiian Electric (HE) Q4 Earnings Miss, Expenses Drop Y/Y
Hawaiian Electric Industries Inc. (HE - Free Report) reported adjusted earnings per share (EPS) of 41 cents in the fourth quarter of 2016, which missed the Zacks Consensus Estimate by a penny. On a year-over-year basis, the figure was in line with the prior-year quarter level.
For 2016, the company reported adjusted EPS of $1.75, which was in line with the Zacks Consensus Estimate. Year over year, this figure improved 6.1% from $1.65 in 2015.
Total Revenue
Hawaiian Electric’s total revenue of $617.4 million in the reported quarter also missed the Zacks Consensus Estimate of $628 million by 1.7% and was down 1.1% year over year. The top line declined primarily due to lower contributions from Electric Utility, partially offset by higher contributions from Bank and Other.
For 2016, the company generated total revenue of $2.38 billion, which again missed the Zacks Consensus Estimate of $2.62 billion by 9.2%. The revenue figure also declined 8.5% from $2.60 billion in 2015.
Operating Statistics
Total expenses were down 2.2% year over year to $528 million during the fourth quarter. Meanwhile, total operating income was $88.4 million, up 8.3% mainly on higher contributions from Electric Utility and Bank. Interest expenses amounted to $19 million, down from $19.9 million in the prior-year quarter.
Segment Details
Electric Utility: Segment revenues in the reported quarter were $544.7 million, down 1.9% year over year. Net income, however, increased 3.4% to $34.1 million from $33 million a year ago.
Banking: Segment revenues in the reported quarter were $72.6 million, up 6%. Net income came in at $16.2 million, up 8.5%.
Other: Segment revenues in the reported quarter were $100 million, up 14.9% year over year. The segment reported a quarterly net loss of approximately $5.7 million, compared with the year-ago loss figure of about $5.6 million.
Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise
Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise | Hawaiian Electric Industries, Inc. Quote
Financial Update
Cash and cash equivalents as of Dec 31, 2016, were $278.5 million, down from $300.5 million as of Dec 31, 2015. Long-term debt, net other than bank, at the end of 2016 was $1,619 million, up from $1,578.4 million at 2015-end.
Guidance
Hawaiian Electric currently expects its 2017 adjusted EPS in the range of $1.55–$1.70, with EPS in the Electric Utility segment expected in the band of $1.17–$1.27 and that at the Banking segment in the range of 53–56 cents.
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.
Peer Releases
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2016 operating EPS of 67 cents, beating the Zacks Consensus Estimate of 55 cents by 21.8%.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2016 adjusted EPS of $1.21, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.
CMS Energy Corporation (CMS - Free Report) reported fourth-quarter 2016 adjusted EPS of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>