Hawaiian Electric Industries Inc. Earnings Cheat Sheet: The Profit Increase Streak is Broken

Hawaiian Electric Industries Inc. (NYSE:HE) reported its results for the second quarter. Hawaiian Electric Industries, Inc. 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 Second Quarter

Results: Net income for Hawaiian Electric Industries Inc. fell to $27.6 million (31 cents per share) vs. $29.7 million (31 cents per share) a year earlier. This is a decline of 7.1% from the year earlier quarter.

Revenue: Rose 21.1% to $794.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: HE fell short of the mean analyst estimate of 33 cents per share. It beat the average revenue estimate of $691.2 million.

Quoting Management: “Earnings were lower in the second quarter as our utilities invested in their clean energy and reliability strategies which required additional capital investments and higher operating expenses. Now that rate relief has recently been approved for our largest utility, earnings should improve in the second half of the year,” 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%, with the biggest boost coming in the second quarter of the last fiscal year when revenue rose 24.7% from the year earlier quarter.

From the first quarter, the company’s current liabilities fell to $449.8 million from $4.47 billion.

The company has now missed analyst estimates for the last four quarters. It fell short by one cent in the first quarter, by 9 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Last quarter’s profit decrease breaks a streak of two consecutive quarters of year-over-year profit increases. Net income rose 4.8% in the first quarter and more than twofold in the fourth quarter of the last fiscal year.

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)

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