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Why Is HEI (HE) Down 12.2% Since Last Earnings Report?

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It has been about a month since the last earnings report for Hawaiian Electric (HE - Free Report) . Shares have lost about 12.2% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is HEI due for a breakout? 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 Q4 Earnings Improve, Revenues Fall Y/Y

Hawaiian Electric reported earnings per share (EPS) of 61 cents for the fourth quarter of 2019, which improved 35.6% from 45 cents in the prior-year quarter.

The year-over-year upside can be attributed to higher noninterest income, largely related to the sales of former properties.

For 2019, the company posted EPS of $1.99, up 7.7% from the year-ago number of $1.85.

Total Revenues

Hawaiian Electric’s total revenues of $726 million in the fourth quarter declined 4.7% year over year. The decline was due to lower contributions from both the Electric Utility and Bank segments.

For 2019, the company recorded revenues of $2.87 billion, which rose 0.5% from the year-ago number of $2.86 billion.

Operating Statistics

Total expenses decreased 7.7% year over year to $625.2 million during the fourth quarter.

Total operating income improved 19% year over year to $100.8 million driven by higher contributions from the Electric Utility as well as Bank segments.

Net interest expenses amounted to $21.8 million, down from $22.6 million in the prior-year quarter.

Segment Details

Electric Utility: Revenues at this segment totaled $645.3 million, down 5.2% year over year. Also, net income increased 28.5% to $45.4 million from $35.3 million a year ago.

Banking: At this segment, revenues totaled $80.6 million, down 0.8% year over year. Net income came in at $28.2 million, up 29.7%.

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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