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Xcel Energy Third Quarter Earnings
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XEL
Xcel Energy Inc (NYSE:XEL) announced its results for the most recent quarter on October 25, 2012. Xcel Energy is a holding company that is engaged in the generation, purchase, transmission, distribution and sale of electricity and natural gas.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Xcel Energy's EPS beat estimates and the company's revenues fell in line with predictions. The company reported 81 cents per share versus the 72 cents per share estimate and revenues of $2.72 billion versus the $2.72 billion estimate. EPS rose 17.4% while revenue declined 3.8% from the same period last year. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. The company's net income for the quarter was $398.1 million. This is 17.7% higher than the year-ago quarter.
Management Quote: "We experienced a solid quarter, with earnings increasing mainly due to both our continued system investments that provide long-term value to our customers and timely cost recovery," said Ben Fowke, Chairman, President and Chief Executive Officer. "Our third quarter 2012 results also benefited from hot summer weather, although we experienced similar weather in 2011, it was not a variance driver in the period over period quarterly comparison."
A Look Back: Net income has increased 6.9% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 17.7% from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the fourth quarter has fallen from 33 cents per share to 32 cents, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has been unchanged at $1.78 a share.
Earnings play an important role in measuring the appropriate valuation for a stock. Investors should be cautious if the company's stock price is high but it consistently has low earnings. SEE: Can Earnings Guidance Accurately Predict The Future?
The Numbers: Xcel Energy's EPS beat estimates and the company's revenues fell in line with predictions. The company reported 81 cents per share versus the 72 cents per share estimate and revenues of $2.72 billion versus the $2.72 billion estimate. EPS rose 17.4% while revenue declined 3.8% from the same period last year. Last quarter marks the third in a row in which the company has seen falling revenue on a year-over-year basis. The company's net income for the quarter was $398.1 million. This is 17.7% higher than the year-ago quarter.
Management Quote: "We experienced a solid quarter, with earnings increasing mainly due to both our continued system investments that provide long-term value to our customers and timely cost recovery," said Ben Fowke, Chairman, President and Chief Executive Officer. "Our third quarter 2012 results also benefited from hot summer weather, although we experienced similar weather in 2011, it was not a variance driver in the period over period quarterly comparison."
A Look Back: Net income has increased 6.9% year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 17.7% from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the fourth quarter has fallen from 33 cents per share to 32 cents, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has been unchanged at $1.78 a share.
by
Investopedia Staff
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