Hawaiian Electric Industries Earnings: Snaps Strong Streak with Profit Drop

Hawaiian Electric Industries Inc. (NYSE:HE) reported its results for the third quarter. Hawaiian Electric Industries is a holding company, which through its subsidiaries is engaged in electric utility, banking and other businesses operating mainly in the State of Hawaii.

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Hawaiian Electric Industries Inc. Earnings Cheat Sheet

Results: Net income for Hawaiian Electric Industries Inc. fell to $48.2 million (49 cents per share) vs. $48.9 million (50 cents per share) a year earlier. This is a decline of 1.4% from the year-earlier quarter.

Revenue: Fell 2.1% to $867.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hawaiian Electric Industries Inc. beat the mean analyst estimate of 42 cents per share. It beat the average revenue estimate of $763.4 million.

Quoting Management: “HEI had another solid quarter as we continued to invest in our Hawaii-based businesses. Through the first nine months of this year, Hawaiian Electric Company1 invested $188 million, close to twice its earnings, in local infrastructure projects to modernize the electric grid and reliably integrate increasing amounts of renewable energy.” said Constance H. Lau, HEI president and chief executive officer.

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the second quarter, net income rose 42.2% from the year earlier, while the figure increased 34.1% in the first quarter, 37.8% in the fourth quarter of the last fiscal year and 48.5% in the third quarter of the last fiscal year.

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the third quarter of the last fiscal year, which saw revenue rise 27.6%.

The company has now beaten analyst estimates for three quarters in a row. It beat the mark by 4 cents in the second quarter and by 4 cents in the first quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 33 cents a share to 37 cents over the last sixty days. At $1.60 per share, the average estimate for the fiscal year has fallen from $1.62 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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