Xcel Energy Inc. XEL posted second-quarter 2019 operating earnings of 46 cents per share, which lagged the Zacks Consensus Estimate of 53 cents by 13.21%.
Second quarter earnings gained from higher electric and natural gas margins courtesy of non-fuel riders and regulatory rate outcomes. However, these factors were offset by unfavorable weather, increased depreciation, interest and operating as well as maintenance expenses.
Total Revenues
Xcel Energy’s second-quarter revenues amounted to $2,577 million, which missed the Zacks Consensus Estimate of $2,778 million by 7.22%. The figure also declined 3% from the prior-year quarter’s tally of $2,658 million. Lower Electric revenues hurt the quarterly outcome.
Xcel Energy Inc. Price, Consensus and EPS Surprise
Xcel Energy Inc. price-consensus-eps-surprise-chart | Xcel Energy Inc. Quote
Segment Results
Electric: Revenues declined 4.2% to $2,249 million from $2,348 million in the last reported quarter.
Natural Gas: Revenues improved 5.5% to $308 million from the year-ago quarter’s tally.
Other: Revenues in the segment amounted to $20 million in the quarter, up 11.1% from the year-ago quarter’s figure.
Quarterly Highlights
Total operating expenses dipped 1.8% year over year to $2,167 million.
Operating income in the reported quarter fell 8.9% from the prior-year quarter’s tally to $410 million.
Total interest charges and financing costs in the reported quarter rose 9.1% from the prior-year quarter’s figure to $179 million.
Outlook
Xcel Energy reaffirmed 2019 earnings per share guidance in the range of $2.55-$2.65 and long-term earnings growth in the band of 5-7% from a base of $2.43 (mid-point of the original 2018 guidance range) per share.
Xcel Energy projects an annual increase in dividend rate by 5-7%.
Zacks Rank
Xcel Energy carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Utility Releases
American Electric Power Co., Inc AEP reported second-quarter 2019 adjusted EPS of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.
NextEra Energy NEE reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%.
CMS Energy Corp. CMS reported second-quarter 2019 adjusted EPS of 33 cents, which missed the Zacks Consensus Estimate of 44 cents by 25%.
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