Hawaiian Electric Industries (NYSE:HE) Releases Earnings Results, Beats Estimates By $0.04 EPS

Key Points

• Hawaiian Electric Industries reported quarterly EPS of $0.13, beating the $0.09 consensus estimate, while revenue of $1.01 billion also exceeded expectations of $939 million.
• Despite the estimates beat, core EPS declined from $0.19 a year earlier, primarily due to higher utility operating and maintenance expenses, including $13.7 million in estimated storm costs.
• HEI reported $1.3 billion in liquidity and expects insurance and asset-sale proceeds to reduce its April 2027 wildfire settlement payment to below $300 million. It is also seeking a 5.3% base-rate increase over two years, though approval and timing are uncertain.

Hawaiian Electric Industries (NYSE:HE - Get Free Report) posted its quarterly earnings data on Friday. The utilities provider reported $0.13 EPS for the quarter, beating analysts' consensus estimates of $0.09 by $0.04, FiscalAI reports. The company had revenue of $1.01 billion during the quarter, compared to analysts' expectations of $939.04 million. Hawaiian Electric Industries had a return on equity of 7.90% and a net margin of 6.89%.

Here are the key takeaways from Hawaiian Electric Industries' conference call:

• Core earnings declined: Third-quarter core EPS fell to $0.13 from $0.19 a year earlier, primarily due to higher utility O&M, including $13.7 million in estimated storm costs. HEI has requested deferral of qualifying storm expenses, but deferral would not guarantee eventual recovery.
• Liquidity and settlement funding remain strong: HEI reported $1.3 billion in total liquidity and expects proceeds from its remaining American Savings Bank stake and insurance to reduce the April 2027 wildfire settlement payment to below $300 million; it plans to finance the balance with debt or convertible debt.
• HEI is seeking a 5.3% base-rate increase phased in over two years; under the company’s illustrative scenario, a mid-to-late April 2027 decision could provide $83 million of additional revenue that year. Timing and approval remain uncertain, and proposed performance incentives could add to or reduce returns.
• The company said crews restored power to more than 95% of customers affected by Hurricane Lala within three days, and that resilience work helped reduce damage during severe weather. Customer satisfaction remained in the 86th percentile among more than 100 utilities surveyed.

Hawaiian Electric Industries Price Performance

Shares of NYSE HE traded up $0.01 during midday trading on Friday, reaching $8.45. The stock had a trading volume of 4,141,228 shares, compared to its average volume of 3,513,995. The stock has a 50-day moving average of $9.31 and a 200-day moving average of $12.98. The company has a debt-to-equity ratio of 1.57, a quick ratio of 0.99 and a current ratio of 0.99. The company has a market capitalization of $1.46 billion, a price-to-earnings ratio of 11.84 and a beta of 0.50. Hawaiian Electric Industries has a 12-month low of $8.15 and a 12-month high of $17.38.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on HE shares. Weiss Ratings cut shares of Hawaiian Electric Industries from a "sell (d+)" rating to a "sell (d)" rating in a research note on Wednesday, October 14th. LADENBURG THALM/SH SH began coverage on shares of Hawaiian Electric Industries in a report on Tuesday, September 8th. They set a "sell" rating and a $7.00 target price for the company. Jefferies Financial Group decreased their price target on shares of Hawaiian Electric Industries from $8.75 to $7.00 and set an "underperform" rating on the stock in a research report on Tuesday, October 6th. Zacks Research upgraded shares of Hawaiian Electric Industries from a "strong sell" rating to a "hold" rating in a research note on Friday, October 9th. Finally, Barclays cut their price objective on shares of Hawaiian Electric Industries from $12.00 to $9.00 and set an "equal weight" rating for the company in a research report on Wednesday, September 30th. Two equities research analysts have rated the stock with a Hold rating and three have issued a Sell rating to the company. Based on data from MarketBeat.com, Hawaiian Electric Industries has a consensus rating of "Strong Sell" and a consensus target price of $7.67.

Hawaiian Electric Industries Company Profile

Hawaiian Electric Industries, Inc NYSE: HE is a Hawaii-based holding company whose principal business is providing electric utility service across the state. Through its regulated utility subsidiaries—Hawaiian Electric Company, Maui Electric Company and Hawaii Electric Light—the company generates, purchases, transmits, distributes and sells electricity to residential, commercial and industrial customers on the islands of Oahu, Maui, Molokai, Lanai and Hawaii.

The utility uses a combination of renewable and conventional energy resources and supports Hawaii's transition toward a cleaner electric system.

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