Hawaiian Electric Industries Inc. Earnings Cheat Sheet: Earnings Higher Than Expected

Hawaiian Electric Industries Inc. (NYSE:HE) reported net income above Wall Street’s expectations 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for Hawaiian Electric Industries Inc. rose to $48.4 million (50 cents per share) vs. $32.9 million (35 cents per share) in the same quarter a year earlier. This marks a rise of 47% from the year earlier quarter.

Revenue: Rose 27.6% to $886.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HE beat the mean analyst estimate of 43 cents per share. It beat the average revenue estimate of $751.5 million.

Quoting Management: “While utility earnings are recovering from the depressed levels of 2010, returns will continue to fall short of those allowed by the Hawaii Public Utilities Commission. Continued regulatory support to recover our investments in a timely manner is essential to our success in attracting the significant capital needed to fund our utilities’ reliability and clean energy plans. Our bank continues to be a consistent source of capital for HEI and maintained its strong performance. This marks the fourth consecutive quarter of loan growth and we continue to maintain strong profitability metrics and healthy capital levels,” said Constance H. Lau, HEI president and chief executive officer.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.6%, with the biggest boost coming in the most recent quarter when revenue rose 27.6% from the year earlier quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 5 cents, and in the first quarter, it fell short by one cent.

The increase in profit last quarter comes after net income fell in the previous quarter. In the second quarter, net income declined 7.1% to $27.6 million.

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 39 cents a share to 40 cents over the last ninety days. The average estimate for the fiscal year is $1.41 per share, down from $1.46 ninety days ago.

Competitors to Watch: Edison International (NYSE:EIX), Portland General Electric Co. (NYSE:POR), PG&E Corporation (NYSE:PCG), IDACORP, Inc. (NYSE:IDA), NV Energy, Inc. (NYSE:NVE), UniSource Energy Corp. (NYSE:UNS), Hawaiian Electric Co., Inc. (HAWEL), PNM Resources, Inc. (NYSE:PNM), Pinnacle West Capital Corp. (NYSE:PNW), and The AES Corporation (NYSE:AES).

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(Source: Xignite Financials)