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Xcel Energy Q4 Earnings In Line, 2016 Guidance Maintained

Zacks Equity Research
Updated

Minneapolis-based Xcel Energy Inc. XEL recorded fourth-quarter operating earnings of 41 cents per share, consistent with the Zacks Consensus Estimate. Quarterly earnings were however 5.1% higher year over year.

Xcel Energy Inc. - Earnings Surprise | FindTheBest

GAAP and ongoing earnings were the same as there were no adjustments.

Full-year ongoing earnings came in at $2.09, marginally lower than the Zacks Consensus Estimate of $2.10 but nearly 3% higher than 2014 earnings.

Full year GAAP earnings were $1.94. The difference between GAAP and ongoing earnings was due to a one-time loss of 16 cents on a power uprate project.

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Total Revenue

Xcel Energy’s fourth-quarter revenues of $2,646 million lagged the Zacks Consensus Estimate of $3,059 million by 13.5%. Revenues decreased 9.6% year over year due to lower contribution from all segments.

Full year operating revenues were $11.02 billion, lagging the Zacks Consensus Estimate of $11.9 billion by 7.4% and decreasing 5.8% from the 2014 level.

Segment Revenue

Electric: Revenues decreased 3.6% year over year to $2,170.2 million.

Natural Gas: Quarterly revenues decreased 30.6% to nearly $455.9 million.

Other: Segment revenues of $19.7 million in the reported quarter fell 7.1% from the year-ago period.

Quarterly Highlights

Total operating expenses decreased 13.1% year over year to $2,204.8 million. Costs shrunk primarily due to lower cost of natural gas sold and transported and reduced expenses from electric fuel and purchased power.

Operating income for the quarter increased 12.7% year over year to $441 million.

Financial Update

Total debt as of Dec 31, 2015, was $14 billion out of which long-term debt was $12.5 billion.

2016 Guidance

Xcel Energy maintained the 2016 operating earnings guidance in the range of $2.12–$2.27 per share and projects long-term earnings growth of 4–6% per year.

Xcel, on a weather-normalized basis, expects retail electric utility sales to grow 0.5–1% and natural gas sales to remain flat.

Various operating expenses such as depreciation expense, property taxes and interest expense are expected to rise over 2015 levels.

Upcoming Peer Releases

Northwestern Corporation NWE is scheduled to release fourth-quarter results before market opens on Feb 11, 2016. The Zacks Consensus Estimate stands at 98 cents.

IdaCorp, Inc. IDA is scheduled to release fourth-quarter results before market opens on Feb 18, 2016. The Zacks Consensus Estimate stands at 66 cents.

Calpine Corp. CPN is slated to release fourth-quarter results before market opens on Feb 12, 2016. The Zacks Consensus Estimate is at a loss of 1 cent.

Zacks Rank

Xcel Energy currently has a Zacks Rank #3 (Hold).

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XCEL ENERGY INC (XEL): Free Stock Analysis Report
 
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