November 7, 2016 - 2:08 PM EST
Print Email Article Font Down Font Up Charts

Post Earnings Coverage as Xcel Energy Earnings Up 7.1%

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:

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:

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%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.


The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email [email protected]. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.


AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.


This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit


For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: [email protected]
Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

Source: ACCESSWIRE Investor Awareness (November 7, 2016 - 2:08 PM EST)

News by QuoteMedia

Legal Notice