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Hawaiian Electric Industries Misses on the Top and Bottom Lines

By Seth Jayson – Updated Apr 10, 2017 at 1:23PM

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Just the facts, Fool.

Hawaiian Electric Industries (NYSE: HE) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Hawaiian Electric Industries missed estimates on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue dropped. GAAP earnings per share contracted significantly.

Margins dropped across the board.

Revenue details
Hawaiian Electric Industries reported revenue of $784.1 million. The three analysts polled by S&P Capital IQ anticipated net sales of $822.1 million on the same basis. GAAP reported sales were the same as the prior-year quarter's.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.34. The five earnings estimates compiled by S&P Capital IQ forecast $0.38 per share. GAAP EPS of $0.34 for Q1 were 15% lower than the prior-year quarter's $0.40 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 9.5%, 30 basis points worse than the prior-year quarter. Operating margin was 9.0%, 30 basis points worse than the prior-year quarter. Net margin was 4.3%, 40 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $848.6 million. On the bottom line, the average EPS estimate is $0.41.

Next year's average estimate for revenue is $3.45 billion. The average EPS estimate is $1.64.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 162 members out of 186 rating the stock outperform, and 24 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Hawaiian Electric Industries a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hawaiian Electric Industries is hold, with an average price target of $26.50.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Hawaiian Electric Industries, Inc. Stock Quote
Hawaiian Electric Industries, Inc.
HE
$36.72 (-2.08%) $0.78

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