Minneapolis, MN-based Xcel Energy Inc. (XEL) firm has made a mark of its own in the electric utility space through its widespread operations and a solid customer base. The company currently operates primarily through its regulated utilities which lend a long-term growth potential.
However, considering the nature of this industry, electric and natural gas utility businesses are impacted by changes in weather patterns which, in turn, weigh on their performance. In addition, U.S. Government’s focus to lower carbon emission from power plants could impact Xcel Energy as it produces a major portion of its electricity from coal- fired units.
Estimate Trend & Surprise History
Xcel Energy missed on both the earnings and revenue Estimates in last quarter. Moreover, the recent earnings estimate revision activity for XEL has been mostly to the downside. The company currently has a Zacks Rank #2 (Buy).
Coming to the earnings surprise, Xcel Energy has surpassed the Zacks Consensus Estimate in two of the last four quarters. However, due to wider negative surprises in the last two reports, the company’s average surprise beat is at a negative 0.35%.
Going further things could definitely change given the company’s recently released earnings results. Going below we have mentioned some of the vital information from this just-revealed announcement:
Earnings: Xcel Energy beat on earnings in the fourth quarter. Our consensus called for fourth-quarter EPS of 34 cents, and the company reported EPS of 39 cents (these figures take out stock option expenses).
Revenue: The company also surpassed the revenue estimates in the fourth quarter. Xcel Energy posted revenues of $2,928.6 million in the quarter, compared to our consensus estimate of $2,876 million.
Key Stats to Note: Xcel Energy’s total electric sales increased 0.5% in the fourth quarter compared with the prior-year period. However, the utility’s natural gas sales declined 0.9% in the quarter from last year.
Stock Price: Shares were down 0.74% ahead of the report and remained inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.
Check back later for our full write up on this Xcel Energy earnings report!
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