Hawaiian Electric Industries Earnings: Strong Revenue Growth Tops Street

Hawaiian Electric Industries Inc. (NYSE:HE) reported net income above Wall Street’s expectations for the first 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 First Quarter

Results: Net income for Hawaiian Electric Industries Inc. rose to $38.8 million (40 cents per share) vs. $28.9 million (30 cents per share) in the same quarter a year earlier. This marks a rise of 34.1% from the year-earlier quarter.

Revenue: Rose 14.7% to $814.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Hawaiian Electric Industries Inc. beat the mean analyst estimate of 36 cents per share. It beat the average revenue estimate of $763.4 million.

Quoting Management: “HEI delivered solid results in the first quarter of 2012 and continued to reinvest earnings into our Hawaii-based businesses.  Our three utilities, Hawaiian Electric, Maui Electric and Hawaii Electric Light Company, invested over $40 million — one and a half times their earnings — in infrastructure for a more modern and reliable electric grid that will be able to integrate significant amounts of renewable energy across our islands.  As we announced last week, American Savings Bank increased its loan portfolio for the sixth consecutive quarter, adding more than $100 million in loans to customers over the last year,” said Constance H. Lau, HEI president and chief executive officer.

Key Stats:
Hawaiian Electric (NYSE:HE) has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.1%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 27.6% from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the fourth quarter of the last fiscal year, net income rose 37.8% and in the third quarter of the last fiscal year, the figure rose 48.5%.
The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 36 cents per share.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the second quarter is 36 cents per share, down from 38 cents ninety days ago. The average estimate for the fiscal year is $1.64 per share, down from $1.72 ninety days ago.

Competitors to Watch: Edison International, Portland General Electric Co., PG&E Corporation, IDACORP, Inc., NV Energy, Inc., UniSource Energy Corp., Hawaiian Electric Co., Inc., PNM Resources, Inc., Pinnacle West Capital Corp., and The AES Corporation.

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

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