Hawaiian Electric Industries Inc. (HE) reported earnings of 46 cents per share in the third quarter, which surpassed the Zacks Consensus Estimate of 41 cents by 12.2%. However, earnings were below the year-ago figure of 48 cents by 4.2%.
The year-over-year decline was due to soft performance at its Banking segment, which offset the improved results at the Electric Utility segment.
Total Revenues
Total revenues at the end of the reported quarter were $867.1 million, up 4.6% year over year. The reported results were also higher than the Zacks Consensus Estimate of $804 million by 7.8%.
Operating Statistics
Total expenses were up 4.7% year over year to $776 million while total operating income was $91.1 million, up 3.5% year over year.
Segment Details
Electric Utility: Segment revenues in the reported quarter were $803.6 million, up 5.2% year over year. Segment net income increased 2.8% year over year to $38.9 million. The upside resulted primarily from higher revenues, which was marginally offset by steeper operations and maintenance, fuel oil and depreciation expenses.
Banking: Segment revenues in the reported quarter were $63.5 million, down 2.3% year over year. Hawaiian Electric’s Banking segment recorded a net income of $13.3 million in the reported quarter, down 13.2% from $15.3 million in the year-ago quarter. The year-over-year decline was due to lower fee income on other financial products, lower mortgage banking income and higher provision for loan losses.
Other: The segment reported a quarterly net loss of $4.3 million, narrower than the year-ago loss of nearly $4.9 million. The narrower loss was primarily due to lower interest expenses.
Financial Update
Cash and cash equivalents as of Sep 30, 2014, were $192.6 million, down from $220 million as of Dec 31, 2013. Long-term debt, net other than bank was $1,517.9 million, up from the 2013 year-end level of $1,492.9 million.
Cash from operating activities in the first nine months of 2014 was $173.4 million versus $246.7 million in the comparable year-ago period. Capital expenditure in the aforesaid period was $236 million, down 4.6% from the year-ago period.
The company declared cash dividend of 31 cents per share to be paid on Dec 10, 2014 to shareholders of record as of Nov 21, 2014. The annual dividend will then amount to $1.24 per share.
Other Peer Releases
Public Service Enterprise Group Inc. (PEG) reported third-quarter 2014 operating earnings of 77 cents per share, surpassing the Zacks Consensus Estimate of 75 cents by 2.7%.
PG&E Corp’s (PCG) adjusted operating earnings of $1.73 per share in the third quarter of 2014 comfortably surpassed the Zacks Consensus Estimate of $1.15 by 50.4%.
Edison International (EIX) reported solid third-quarter 2014 results wherein its adjusted earnings of $1.52 per share came ahead of the Zacks Consensus Estimate of $1.35 by 12.6%.
Zacks Rank
Hawaiian Electric currently holds a Zacks Rank #2 (Buy).
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