Hawaiian Electric Industries Inc. Earnings: Fifth Consecutive Quarter of Double-Digit Revenue Growth

Hawaiian Electric Industries Inc. (NYSE:HE) reported higher profit for the fourth quarter as revenue showed growth. 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 Fourth Quarter

Results: Net income for Hawaiian Electric Industries Inc. rose to $34.7 million (36 cents per share) vs. $25.2 million (26 cents per share) in the same quarter a year earlier. This marks a rise of 37.8% from the year earlier quarter.

Revenue: Rose 22.3% to $851 million from the year earlier quarter.

Actual vs. Wall St. Expectations: Hawaiian Electric Industries Inc. fell in line with the mean analyst estimate of 36 cents per share. It beat the average revenue estimate of $703 million.

Quoting Management: “Our improved earnings help us fund the upfront investments necessary to support Hawaii’s move to clean energy. We are continuing to reinvest earnings in an aggressive infrastructure program to modernize the electric grid for reliability and to prepare it for significant amounts of renewable energy. In 2011 alone, we invested over $200 million in utility infrastructure which is twice the utilities’ 2011 earnings,” 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 19.6%, with the biggest boost coming in the third quarter when revenue rose 27.6% from the year earlier quarter.

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 50 cents versus a mean estimate of net income of 43 cents per share.

Net income has increased 37.9% year over year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed more than twofold from the year earlier quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 33 cents a share to 37 cents over the last ninety days. For the fiscal year, the average estimate has moved up from $1.41 a share to $1.45 over the last ninety days.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com