What Will Drive Xcel Energy’s Revenues in 1Q17?
Xcel Energy’s 1Q17 results
Minneapolis-based Xcel Energy (XEL) is set to report its 1Q17 financial results on April 27, 2017. According to analysts’ estimates, Xcel Energy will report total revenues of $3.0 billion for the quarter. For the same quarter last year, Xcel Energy reported total revenues of $2.8 billion.
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Xcel Energy has maintained a customer base growth rate of ~1.0% for the last several quarters, which is in line with the industry average. It could be an important revenue driver in 1Q17.
In the US, heating degree days in 1Q17 were 5% lower than heating degree days in 1Q16. Milder weather might have a negative impact on utilities’ (XLU) first quarter revenues.
Electricity demand growth is expected to stay subdued in 2017 due to energy efficiency programs. According to the U.S. Energy Information Administration, electricity generation is estimated to fall 0.7% this year—compared to 2016. Lower electricity generation could have a negative impact on utilities’ revenues this year. On the positive side, electricity prices are expected to increase this year, which might partially offset the effect. We’ll discuss US electricity prices in detail in the next part of the series.
Xcel Energy’s large cap peer, Southern Company (SO) is expected to report its 1Q17 earnings on May 2, while Duke Energy (DUK) will report its earnings on May 9, 2017. NextEra Energy will report its earnings on April 21, 2017.