Hawaiian Electric Industries (NYSE:HE) Releases Earnings Results

Key Points

• Hawaiian Electric Industries reported quarterly EPS of $0.13, below analysts’ $0.21 consensus, although revenue of $939.7 million exceeded estimates of $745.9 million. Core net income declined from $35.4 million to $22.5 million year over year amid higher interest, wildfire mitigation, insurance, storm-response and maintenance costs.
• HEI plans to seek financing approval to securitize approximately $350 million in wildfire mitigation spending, which could reduce customer financing costs. Its credit profile also improved after S&P upgraded HEI and Hawaiian Electric to BB-, with consolidated liquidity near $1.3 billion.
• The company resubmitted a request for a $170 million base-rate increase over two years, while analysts remain cautious: the stock carries a consensus “Reduce” rating and a $12.38 price target, near its reported $12.40 share price.

Hawaiian Electric Industries (NYSE:HE - Get Free Report) issued its earnings results on Friday. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.21 by ($0.08), FiscalAI reports. Hawaiian Electric Industries had a net margin of 4.19% and a return on equity of 9.03%. The company had revenue of $939.70 million for the quarter, compared to analyst estimates of $745.92 million. During the same period last year, the business earned $0.15 EPS.

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

• Wildfire mitigation costs may be securitized rather than primarily added to rate base, potentially lowering customer financing costs. HEI plans to seek a financing order later this year for approximately $350 million of approved WMP spending.
• HEI’s credit profile improved, with S&P upgrading both HEI and Hawaiian Electric to BB- in July, following Moody’s one-notch upgrade in April. The company cited progress in reducing wildfire risk and maintaining approximately $1.3 billion of consolidated liquidity.
• The company resubmitted its rate rebasing request, seeking a total $170 million base-rate increase phased in over two years, including $125 million beginning in 2027. HEI has requested an interim decision by December 2026, while a final decision is expected in April 2027.
• Second-quarter core net income fell to $22.5 million, or $0.13 per share, from $35.4 million, or $0.20, a year earlier. Results were pressured by higher interest expense, vegetation management and maintenance costs, storm response spending, insurance premiums, and other O&M increases.
• HEI is advancing large competitive procurements to meet rising demand and modernize generation, including renewable, storage, and firm-capacity resources. The PUC, however, requested a more thorough demonstration of need before considering HEI’s proposal for up to 500 megawatts of additional firm generation on Oʻahu.

Hawaiian Electric Industries Stock Down 0.7%

Shares of Hawaiian Electric Industries stock traded down $0.09 during midday trading on Friday, reaching $12.40. 2,472,910 shares of the company's stock traded hands, compared to its average volume of 1,520,704. The company has a debt-to-equity ratio of 1.70, a quick ratio of 1.34 and a current ratio of 1.34. Hawaiian Electric Industries has a 52 week low of $10.60 and a 52 week high of $17.38. The company's 50 day simple moving average is $13.28 and its 200 day simple moving average is $14.47. The company has a market cap of $2.14 billion, a price-to-earnings ratio of 16.76 and a beta of 0.50.

Hedge Funds Weigh In On Hawaiian Electric Industries

Hedge funds have recently bought and sold shares of the business. State Street Corp lifted its position in shares of Hawaiian Electric Industries by 56.9% in the fourth quarter. State Street Corp now owns 7,005,768 shares of the utilities provider's stock worth $86,171,000 after buying an additional 2,540,134 shares during the last quarter. Geode Capital Management LLC raised its stake in shares of Hawaiian Electric Industries by 5.3% in the 4th quarter. Geode Capital Management LLC now owns 4,125,284 shares of the utilities provider's stock valued at $50,750,000 after acquiring an additional 209,192 shares in the last quarter. Dimensional Fund Advisors LP raised its stake in shares of Hawaiian Electric Industries by 7.3% in the 4th quarter. Dimensional Fund Advisors LP now owns 2,212,106 shares of the utilities provider's stock valued at $27,212,000 after acquiring an additional 150,347 shares in the last quarter. Goldman Sachs Group Inc. lifted its holdings in Hawaiian Electric Industries by 16.1% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,593,550 shares of the utilities provider's stock worth $19,601,000 after purchasing an additional 220,879 shares during the last quarter. Finally, Bank of America Corp DE lifted its holdings in Hawaiian Electric Industries by 5.2% in the 3rd quarter. Bank of America Corp DE now owns 1,565,958 shares of the utilities provider's stock worth $17,288,000 after purchasing an additional 76,820 shares during the last quarter. 59.91% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

HE has been the subject of several recent research reports. Weiss Ratings upgraded Hawaiian Electric Industries from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, July 20th. Barclays lowered their target price on Hawaiian Electric Industries from $14.00 to $13.00 and set an "equal weight" rating on the stock in a research note on Thursday, June 25th. Zacks Research lowered Hawaiian Electric Industries from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, May 6th. Jefferies Financial Group cut their price target on Hawaiian Electric Industries from $13.75 to $11.75 and set an "underperform" rating for the company in a research note on Monday, July 6th. Finally, Wall Street Zen lowered Hawaiian Electric Industries from a "buy" rating to a "hold" rating in a report on Saturday, April 11th. Two research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Reduce" and a consensus price target of $12.38.

About Hawaiian Electric Industries

Hawaiian Electric Industries, Inc is a diversified holding company operating in the energy and financial services sectors in the state of Hawaii. Its principal subsidiary, Hawaiian Electric Company, provides generation, transmission, distribution and customer service to the island of Oahu, while its Maui Electric and Hawaii Electric Light Company subsidiaries serve Maui, Molokai, Lanai and Hawaii Island. The roots of the electric utility business trace back to 1891 when service first commenced in Honolulu.

Through its subsidiary Hawaii Gas, HEI extends its energy portfolio to include the distribution of natural gas and propane, supporting residential, commercial and industrial customers across the islands.

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