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Hawaiian Electric (HE) Q3 Earnings Lag, Retains '17 EPS View

Hawaiian Electric Industries Inc. HE reported adjusted earnings per share (EPS) of 55 cents in third-quarter 2017, which missed the Zacks Consensus Estimate of 57 cents by 3.5%. On a year-over-year basis, the figure declined 5.2% from the prior-year quarter level of 58 cents.

The company’s GAAP earnings were also 55 cents in the reported quarter, reflecting a 53% decline from the year-ago figure of $1.17.

Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise


Hawaiian Electric Industries, Inc. Price, Consensus and EPS Surprise | Hawaiian Electric Industries, Inc. Quote


Total Revenues

Hawaiian Electric’s total revenues of $673.2 million in the reported quarter surpassed the Zacks Consensus Estimate of $646.1 million by 4.2% and was also up 4.2% year over year. The top line improved primarily owing to higher contributions from Electric Utility and Other segments.

Operating Statistics

Total expenses were up 4.3% year over year to $563.6 million during the third quarter.

Total operating income was $109.5 million, up 3.9%, mainly due to higher contributions from Bank segment.

Net interest expenses amounted to $19.2 million, down from $19.4 million in the prior-year quarter.

Segment Details

Electric Utility: Segment revenues in the reported quarter were $598.8 million, up 4.6% year over year. Net income rose 1.1% to $47.5 million from $47 million a year ago.

Banking: Segment revenues were $74.3 million, up 0.8%. Net income came in at $17.6 million, up 16.5%.

Other: Segment revenues were $0.1 million, up 35.1% year over year. However, it incurred a quarterly net loss of approximately $5 million as against the year-ago net income of $65.1 million.

Financial Update

Cash and cash equivalents as of Sep 30 were $202.2 million, down from $278.5 million as of Dec 31, 2016.

Long-term debt, net other than bank, at the end of the third quarter was $1,618.4 million, down from $1,619 million at 2016-end.


Hawaiian Electric reaffirmed its 2017 adjusted EPS in the range of $1.55-$1.70.

However, in the Electric Utility segment it expects EPS in the lower end of the band of $1.17-$1.27, while the same at the Bank segment has been raised to the range of 58-60 cents compared to earlier guidance range of 53-56 cents.

Zacks Rank & Key Pick

Hawaiian Electric currently carries a Zacks Rank #4 (Sell). A better-ranked stock in the same space is CenterPoint Energy, Inc. CNP, which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CenterPoint Energy has surpassed the Zacks Consensus Estimate for earnings in the trailing four quarters, with an average beat of 10.34%.

Recent Peer Releases

PG&E Corporation’s PCG adjusted operating EPS of $1.12 in third-quarter 2017 surpassed the Zacks Consensus Estimate of 94 cents by 19.1%. Earnings were also up 19.1% from 94 cents reported in the year-ago quarter.

CMS Energy Corporation CMS reported third-quarter 2017 adjusted EPS of 62 cents, which surpassed the Zacks Consensus Estimate of 55 cents by 12.7%. Quarterly earnings however declined 11.4% from the year-ago figure of 70 cents.

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