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It has been about a month since the last earnings report for Hawaiian Electric (HE). Shares have lost about 0.5% 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 the most recent earnings report in order to get a better handle on the important drivers.
Hawaiian Electric Q2 Earnings Miss, Revenues Up Y/Y
Hawaiian Electric Industries reported earnings per share (EPS) of 39 cents in the second quarter of 2019, which missed the Zacks Consensus Estimate of 44 cents by 11.4%. The bottom line also declined 7.1% from 42 cents in the prior-year quarter.
Total Revenues
Hawaiian Electric’s total revenues of $715.5 million in the second quarter outpaced the Zacks Consensus Estimate of $593 million by 20.7% and rose 4.4% year over year. The improvement can be attributed to increased contributions from both the Electric Utility and Bank segments.
Operating Statistics
Total expenses increased 6% year over year to $642.9 million during the second quarter.
Moreover, total operating income declined 7.8% year over year to $72.6 million, due to lower contributions from the Bank segment.
Net interest expenses amounted to $23.5 million, up from $22 million in the prior-year quarter.
Segment Details
Electric Utility: Revenues at this segment totaled $633.8 million, up 4.2% year over year. Also, net income increased 1% to $55.7 million from $55.1 million a year ago.
Banking: At this segment, revenues summed $81.7 million, up 6% year over year. Meanwhile, net income came in at $21.3 million, down 21%.
Financial Position
Hawaiian Electric had cash and cash equivalents of $198.5 million as of Jun 30, 2019, compared with $169.2 million as of Dec 30, 2018.
Long-term debt, other than bank, was $1,884 million as of Jun 30, 2019, compared with $1,879.6 million as of Dec 31, 2018.
In the first half of 2019, net cash inflow from operating activities totaled $133.4 million compared to the cash inflow of $108.3 million in the first half of 2018.
Guidance
Hawaiian Electric reaffirmed its earnings guidance for 2019. The company continues to expect earnings of $1.85-$2.05 per share. The Zacks Consensus Estimate for 2019 earnings is pegged at $1.95, which lies at the midpoint of the company’s guided range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
At this time, HEI has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.