Xcel Energy’s 4Q16 Revenues Rose 5%, Missed Estimates
Xcel Energy missed revenue estimates
Minneapolis-based Xcel Energy (XEL) reported its 4Q16 and fiscal 2016 financial results on February 2, 2017. It reported total revenues of $2.8 billion—compared to analysts’ estimates of $3.5 billion for 4Q16. It reported revenues of $2.6 billion in 4Q15.
Xcel Energy missed revenue estimates, but posted a strong rise of 10% in its earnings per share YoY (year-over-year). Wall Street celebrated its quarterly earnings. Xcel stock closed and rose nearly 2% for the day.
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What drove Xcel Energy’s revenues?
Xcel Energy’s weather-adjusted electric sales in 4Q16 were 0.3% lower compared to 4Q15. It expanded its customer base 0.9% during the quarter YoY, which had a positive impact on Xcel Energy’s top line.
During 4Q16, Xcel Energy’s revenues from electric operations rose 5.5%—compared to 4Q15. On the other hand, gas revenues rose more than 6% YoY.
Revenues were also impacted positively due to higher margins in the electric and gas businesses—mainly driven by higher rates. Xcel also witnessed favorable weather compared to the same period in 2015.
Xcel Energy is an $21 billion electric and gas distribution company in Minnesota. It has a significant presence in other states like Colorado, Wisconsin, Texas, the Dakotas, New Mexico, and Michigan.
More utility giants will report their 4Q16 earnings this month. Southern Company (SO) will report on February 22, while Duke Energy (DUK) is scheduled to declare its 4Q16 earnings on February 16, 2017.