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Xcel Energy (XEL) Q1 Earnings and Revenues Lag Estimates

Zacks Equity Research

Xcel Energy Inc. XEL posted first-quarter 2020 operating earnings of 56 cents per share, lagging the Zacks Consensus Estimate of 59 cents by 5.1%. The bottom line also declined 8.2% from the year-ago earnings of 61 cents per share.

The decline in earnings was mainly due to lower year-over-year demand on account of unfavorable weather conditions.

Total Revenues

Xcel Energy’s first-quarter revenues of $2,811 million missed the Zacks Consensus Estimate of $3,276 million by 14.2%. Revenues also fell 10.5% from the prior-year quarter’s $3,141 million. The decline was due to lower contribution from both electric and natural gas segments than the prior-year quarter.

Xcel Energy Inc Price, Consensus and EPS Surprise

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 5.2% to $2,203 million from $2,325 million in the last reported quarter.

Natural Gas: Revenues fell 26.6% from the year-ago quarter to $583 million.

Other: Revenues in the segment amounted to $25 million, up 13.6% from the year-ago figure.

Quarterly Highlights

Total operating expenses fell 11.3% year over year to $2,356 million, primarily due to lower electric fuel and purchased power expenses.

Operating income in the reported quarter decreased 6.4% from the prior-year quarter to $455 million.

Total interest charges and financing costs in the reported quarter rose 5.6% from the prior-year figure to $189 million.

Looking Ahead

Xcel Energy reaffirmed its 2020 earnings per share guidance in the range of $2.73-$2.83 and long-term earnings growth in the band of 5-7% from a 2019 base of $2.60 (mid-point of the original 2019 guidance range). The mid-point of the current earnings guided range is $2.78, which is in line with the Zacks Consensus Estimate.

It is implementing contingency actions to offset the negative impacts of the COVID-19 pandemic, whose magnitude is quite uncertain.

Xcel Energy projects an annual increase in dividend rate in the range of 5-7% and targets a payout ratio of 60-70%.

Zacks Rank

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

Other Release

Dominion Energy Inc. D reported first-quarter 2020 operating earnings of $1.09 per share, missing the Zacks Consensus Estimate by a penny.

NextEra Energy, Inc. NEE reported first-quarter 2020 adjusted earnings of $2.38 per share, surpassing the Zacks Consensus Estimate of $2.21 by 7.7%.

FirstEnergy Corporation FE came up with first-quarter 2020 operating earnings of 66 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 3.1%.

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