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Hawaiian Electric (HE) Q4 Earnings Miss, Expenses Drop Y/Y


Hawaiian Electric Industries Inc. HE reported adjusted earnings per share (EPS) of 41 cents in the fourth quarter of 2016, which missed the Zacks Consensus Estimate by a penny. On a year-over-year basis, the figure was in line with the prior-year quarter level.

For 2016, the company reported adjusted EPS of $1.75, which was in line with the Zacks Consensus Estimate. Year over year, this figure improved 6.1% from $1.65 in 2015.

Total Revenue

Hawaiian Electric’s total revenue of $617.4 million in the reported quarter also missed the Zacks Consensus Estimate of $628 million by 1.7% and was down 1.1% year over year. The top line declined primarily due to lower contributions from Electric Utility, partially offset by higher contributions from Bank and Other.

For 2016, the company generated total revenue of $2.38 billion, which again missed the Zacks Consensus Estimate of $2.62 billion by 9.2%. The revenue figure also declined 8.5% from $2.60 billion in 2015.

Operating Statistics

Total expenses were down 2.2% year over year to $528 million during the fourth quarter. Meanwhile, total operating income was $88.4 million, up 8.3% mainly on higher contributions from Electric Utility and Bank. Interest expenses amounted to $19 million, down from $19.9 million in the prior-year quarter.

Segment Details

Electric Utility: Segment revenues in the reported quarter were $544.7 million, down 1.9% year over year. Net income, however, increased 3.4% to $34.1 million from $33 million a year ago.

Banking: Segment revenues in the reported quarter were $72.6 million, up 6%. Net income came in at $16.2 million, up 8.5%.

Other: Segment revenues in the reported quarter were $100 million, up 14.9% year over year. The segment reported a quarterly net loss of approximately $5.7 million, compared with the year-ago loss figure of about $5.6 million.

Financial Update

Cash and cash equivalents as of Dec 31, 2016, were $278.5 million, down from $300.5 million as of Dec 31, 2015. Long-term debt, net other than bank, at the end of 2016 was $1,619 million, up from $1,578.4 million at 2015-end.


Hawaiian Electric currently expects its 2017 adjusted EPS in the range of $1.55–$1.70, with EPS in the Electric Utility segment expected in the band of $1.17–$1.27 and that at the Banking segment in the range of 53–56 cents.

Zacks Rank

Hawaiian Electric currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

American Electric Power Co., Inc. AEP reported fourth-quarter 2016 operating EPS of 67 cents, beating the Zacks Consensus Estimate of 55 cents by 21.8%.

NextEra Energy, Inc. NEE reported fourth-quarter 2016 adjusted EPS of $1.21, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.

CMS Energy Corporation CMS reported fourth-quarter 2016 adjusted EPS of 29 cents, in line with the Zacks Consensus Estimate. Quarterly earnings, however, tanked 23.7% year over year.

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