Upcoming AWS Coverage on NextEra Energy Post-Earnings Results
LONDON, UK / ACCESSWIRE / November 7, 2016 / Active Wall St. announces its post-earnings coverage on Xcel Energy Inc. (NYSE: XEL). The Minneapolis-based company reported its third quarter fiscal 2016 earnings on October 27, 2016. The electricity generator's earnings outperformed expectations on higher gas and electric margins. Xcel Energy also provided FY17 guidance. Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Xcel Energy's competitors within the Electric Utilities space, NextEra Energy Inc. (NYSE: NEE), posted its third quarter 2016 financial results on October 31, 2016, before the market opened. AWS will be initiating a research report on NextEra Energy in the coming days.
Today, AWS is promoting its earnings coverage on XEL; touching on NEE. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=XEL
http://www.activewallst.com/registration-3/?symbol=NEE
Earnings Reviewed
For the three months ended on September 30th, 2016, Xcel Energy posted earnings of $0.90 per share, up 7.1% compared to earnings of $0.84 per share in the same quarter last year. The improvement in earnings, attributed to higher gas and electric margins which boosted earnings by $0.15 per share, largely due to rate increases and capital recovery for infrastructure investments, along with higher sales growth. Earnings number were offset by increased depreciation expense largely due to capital additions and reductions in excess depreciation and reserves, which reduced earnings by $0.06 per share, and higher interest in O&M expenses, which combined, reduced earnings by $0.05 per share. Earnings results topped analysts' projections of $0.87 per share.
For Q3 2016, Xcel Energy reported revenues of $3.04 billion, higher by 4.8% from the year earlier quarter's sales figure of $2.90 billion. Revenues also outperformed analysts' estimates of $2.97 billion. In Q3 2016, Xcel Energy experienced weather adjusted electric sales growth of 1.6% compared to Q3 2015.
Segment Results
During Q3 2016, Xcel Energy's Electric segment's revenues increased from $2.67 billion to $2.80 billion.
The company's Natural Gas division reported revenues of $221.9 million in the reported quarter, higher by 2.7% on a y-o-y basis.
Xcel Energy's Other segment raked in revenues of $18.2 million in Q3 2016, up 2.3% from the prior year's quarter.
Quarterly Highlights
During Q3 2016, Xcel Energy's total operating expenses increased 4.6% on a y-o-y basis to $2.21 billion, on higher depreciation and amortization, and higher operating and maintenance expenses. The company's operating income in the reported quarter climbed 5.3% to $827.1 million.
During Q3 2016, Xcel Energy reached a preliminary settlement with the majority of parties in its Minnesota electric rate case, which would provide revenue certainty through 2019. Key terms for the four-year plan include: an ROE of 9.2% and an equity ratio of 52.5%; an annual sales true-up; a continued use of all existing riders; a four-year rate-case stay-out provision; a property tax true-up; and a capital true-up mechanism. The company also announced that it has reached a settlement and agreement in principle in its Texas rate case, and hearings have been vacated. The company stated that it is working on documenting the settlement and plan to file it in Q4 2016. The company stated that the settlement is positive and reflects a growing constructive regulatory environment in Texas and New Mexico. Finally, Xcel Energy requested a revised rate increase of approximately $35 million between electric and natural gas in the pending rate case in Wisconsin.
Looking Ahead
Xcel Energy stated that based on its year-to-date results, it is narrowing FY16 ongoing earnings guidance range to between $2.17 per share to $2.22 per share, from the previously announced range of $2.12 per share to $2.22 per share. The company also provided FY16 earnings guidance of $2.25 per share to $2.35 per share, consistent with its objective of growing EPS of 1% to 6% annually. The company also updated its capital forecast and now expects to invest $18.4 billion over the next five-year period of 2017 through 2021.
Stock Performance
On Friday, the stock closed the trading session at $40.36, marginally down 0.64% from its previous closing price of $40.62. A total volume of 2.34 million shares have exchanged hands. Xcel Energy's stock price advanced 1.87% in the last month, and 15.60% in the previous twelve months. Furthermore, since the start of the year, shares of the company have surged 15.19%. The stock is trading at a PE ratio of 19.13 and has a dividend yield of 3.37%.
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SOURCE: Active Wall Street
