More From Vineet Kulkarni
What Are Analyst Recommendations for Apache?
Wall Street analysts gave mixed recommendations after Apache’s quarterly results. Apache shares fell 5% on November 6, 2015, after the earnings release.
Southern Company’s Price Targets and Growth Outlook for 2017
According to analysts’ estimates, Southern Company (SO) has a one-year median price target of $50.88, implying an upside of a mere 3% in the next year.
A Look at Analysts’ Views and Price Targets on Southern Company
According to Wall Street analysts, Southern Company (SO) has a price target of $51.22 compared with its current market price of $51.53. This implies an estimated downside of 0.6%.
Are These Utilities’ Earnings Enough to Attract You?
US utilities (XLU) are targeting average annual earnings growth of 4%–6% for the next few years.
How Institutional Investors Played FirstEnergy in Q2 2018
Nuveen LLC added ~2.0 million shares of FirstEnergy and increased its stake to 2.6% on June 30.
Is Xcel Energy Attractive despite Its Muted Price Targets?
Of the 17 analysts tracking Xcel Energy, 11 recommend it as a “hold” and four recommend it as a “buy.” Two analysts recommended it as a “sell” on August 3, 2016.
Will Western Refining’s Strong Margins Continue?
Western Refining recorded another strong quarter financially and operationally. It recorded the most profitable quarter ever in the retail segment.
What Investors Should Know about Dominion Energy’s Dividends
Dominion Energy’s (D) payout ratio (the percentage of profit that it gave away in the form of dividends) was 81% in 2016, which is higher than the industry average and slightly on the lower side of its five-year payout average of 85%.
In-Depth Look: Debt Servicing Eating into Operations Cash
With large reductions in cash from operations and heavy burdens of fixed debt repayments, the ratio of debt servicing to operating cash flow rose in 2015.
Is AES Fairly Valued ahead of Its 4Q16 Earnings?
AES Corporation (AES) has rallied steeply in the last year, rising more than 21%. The Utilities Select Sector SPDR ETF (XLU) has risen nearly 8% in the same period.
Southern Company Focuses on This for Revenue Growth
Southern Company will announce its 3Q16 financial results on October 31, 2016. For the quarter, analysts are expecting the company to report sales of $6 billion.
What Analysts Expect from Water Utilities’ Dividend Growth
US water utilities have distributed fair dividends during the past few quarters. American Water Works’ dividend growth in the last five years stands at 10%.
Analyzing Dominion Energy Stock before Its 2Q17 Earnings
Currently, Dominion Energy (D) stock is trading at a 1% discount and a 1% premium to its 50-day and 200-day moving averages, respectively.
How Calpine Stock Is Valued Compared to Its Peers
On March 27, 2017, Calpine stock was trading at an EV-to-EBITDA valuation multiple of 10.0x. US utilities’ (XLU) average multiple is just above 10.0x.
Why CMS Energy Is Targeting Above-Average Earnings Growth
$12 billion CMS Energy has one of the highest earnings growth rates in the industry. The company forecasts that it will grow 5%–7% in 2016 and 6%–8% thereafter.
FirstEnergy’s Chart Indicators and Short Interest
FirstEnergy is trading at $40.4, which is ~4% and 8% above its 50-day and 200-day moving average levels, respectively.
Where Exelon Stock May Head in the Short Term
Chart indicators As we discussed earlier, Exelon (EXC) has gained more than 11% so far this year, while in the last year, it has managed to rise by just 3%. On March 16, 2017, Exelon was trading 1% and 4% above its 50-DMA (day moving average) and 200-DMA, respectively. Exelon’s chart indicators look stable, and […]
Comparing Institutional Investors’ Positions in Sempra Energy
Sempra Energy Sempra Energy (SRE) became California’s biggest utility by market capitalization after PG&E’s (PCG) epic fall last month. The Vanguard Group, which holds 7.2% of Sempra Energy’s outstanding shares, added 0.34 million shares in 3Q17. At the end of September 30, 2017, Vanguard held 18.1 million Sempra Energy shares. According to a recent report, […]
Will Southern Company Beat Its Q3 EPS Estimates?
Southern Company’s management has given an EPS guidance of $1.05 for the third quarter.
Analyzing US Regulated Utilities’ Total Returns
US mid-size regulated utilities outperformed their bigger counterparts in the past year. Their rally was much steeper—this boosted total returns.
Is American Electric Power Poised for Long-Term Growth?
The steep rally of utilities ended after investors offloaded the stock based on valuations. The Fed’s projected interest rate hike is a key driver.
Southern Company’s 4Q16 Earnings Fell on High Operating Costs
Southern Company (SO) reported earnings of $0.24 per share for 4Q16.
Will Dominion Energy Report Higher Earnings in Q4 2018?
Dominion Energy (D), the third-largest utility by market cap, will report its fourth-quarter and 2018 earnings results on February 1.
Are US Utilities Both Safe Havens and Overvalued?
The rush to US utilities despite their already stretched valuations indicates their safe-haven appeal amid global turmoil.
Utilities with Maximum Returns in the Last Five Years
NextEra Energy (NEE), the biggest component of the Utilities ETF (XLU), had total returns of 130% in the last five years.
Dominion Resources’ Higher Debt Confirms Its Stretched Financials
Dominion Resources (D) depends upon both internal and external sources of financing for its capital expenses and dividend payments.
PPL’s UK Segment’s Earnings Improved in 2015
PPL has utility operations spread over the eastern United States and the United Kingdom. It derives more than half of its earnings from its UK operations.
How Institutions Played Kinder Morgan in Q4 2018
The Vanguard Group was the top institutional investor in midstream C corporation Kinder Morgan (KMI) during the fourth quarter.
How Electricity Prices Could Affect Utilities
According to the EIA (U.S. Energy Information Administration), retail electricity prices were $0.10 per kilowatt-hour in 1Q17, 1.7% higher compared to 1Q16.
A Look at Institutional Investors’ Holdings in Exelon
In the past couple of months, institutions have increased their positions in Exelon by nearly 2%, from 85.6% to 87.2%, as of October 3, 2016.
XLU: How US Utility Stocks Fared Last Week
US utility stocks continued to recover last week after being weak for more than three months. The Utilities Select Sector SPDR ETF (XLU) rose almost 3%.
What Could Impact PPL’s Dividends in the Future?
PPL’s (PPL) management expects fair annual earnings growth of 5%-6% through 2020, which will likely facilitate its dividend growth.
NextEra’s Dividends to Grow by 13%, First Energy’s to Remain Flat?
NextEra Energy (NEE) is trading at a comparatively lower forward dividend yield than its peers. However, it has the highest expected dividend growth in the next two years.
NRG, DYN, CPN: How Are Merchant Power Stocks Positioned in 2017?
Merchant power producers have been under tremendous pressure in the last few years due to many factors.
FirstEnergy’s Valuation after Its Q3 2018 Earnings
Currently, FirstEnergy stock is trading at a forward PE multiple of 14.8x—lower than peers’ average forward PE multiple of over 17x.
Large Global Presence Dragged AES’s Stock Performance in 2015
The rallying US dollar has marred AES’s earnings. This has been reflected in its stock performance. AES has lost more than 18% in the last 12-month period.
How Top Utility Stocks Fared in the First Half of 2018
The utility sector, among the most vulnerable to interest rate hikes, seems strong despite the rate hike in mid-June.
Strong Dollar Will Likely Drag AES Corporation’s 4Q15 Numbers
In 4Q15, AES Corporation is expected to report earnings of $0.33 per share in 4Q15—compared to earnings of $0.41 per share in 4Q14.
A Look at American Electric Power’s Healthy Credit Profile
American Electric Power (AEP) has an attractive debt profile, with the company’s debt making up just 7% of its consolidated debt.
NextEra Energy: A Look at Analysts’ Price Targets
According to Wall Street analysts, NextEra Energy (NEE) has the potential to rise 11% during the next year.
How Utilities Are Likely to Get Impacted by Higher Interest Rates
US utilities have been one of the main beneficiaries of the near-zero interest rate environment for the past ten years.
NRG Energy Stock’s Current Valuation
Currently, NRG Energy (NRG) is trading at an enterprise value–to–EBITDA valuation of ~11x, compared to its five-year historical average valuation of 11x.
How Higher Interest Rates Hamper Utilities
The expected rise in US interest rates later this year may dent the profitability of utilities, given their higher outflows toward debt servicing.
How Dominion Energy’s Dividend Profile Compares to Peers
Dominion Energy (D), the third-largest utility, declared a per share dividend of $0.84 per share for 1Q18 last month.
Energy Transfer Stock Is at a 52-Week Low
Energy Transfer (ET) stock continues to trade weak. The stock hit a new 52-week low of $12.75 on December 18.
Generation Capacity Additions: Which Source Will Lead in 2016?
New power generation capacity additions in 2015 were mainly contributed by wind, natural gas, and solar. This trend is expected to persist in 2016 as well.
How Treasury Yields Weighed on Utilities
US utilities were trading at a dividend yield premium of ~180 basis points–200 basis points to benchmark Treasury yields during mid-2017.
NRG, CMS, D, and EIX: Analysts’ Target Prices and Views
NRG Energy (NRG) offers a potential upside of more than 11% compared to its current market price of $42.3.
How Will Milder Weather Affect CenterPoint Energy’s 4Q15 Numbers?
Analysts are expecting CNP’s earnings to come in at $0.23 per share in 4Q15 versus its earnings of $0.36 per share in 4Q14.
Analyzing Sempra Energy’s Leverage Trends
At the end of the fourth quarter of 2018, Sempra Energy (SRE) had a net debt of $25.2 billion.
Most Analysts Recommend a ‘Buy’ on Exelon
Exelon (EXC) expects that dismal load growth may continue in 2016. This dismal growth could be partially offset by customer base growth.
A Look at XLU’s Recent Implied Volatility Trends
The broader markets recently witnessed a significant surge in volatility levels. On October 12, implied volatility in the S&P 500 was ~17%.
How Total Returns of Merchant Power Players Are Faring
Merchant power companies have dug a deep hole in investors’ pockets in the last one year.
Who Added Big Positions in NextEra Energy in Q2 2018?
The Vanguard Group is the largest institutional investor in renewables titan NextEra Energy (NEE).
Sempra Energy’s Current Valuation and Dividend Profile
Sempra Energy (SRE) stock appears to be trading at a fair premium. On October 31, 2017, it was trading at an EV-to-EBITDA valuation multiple of 15.4x.
What’s Public Service Enterprise’s Valuation after 2Q Earnings?
As of July 29, 2016, Public Service Enterprise Group (PEG) is trading at an EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple of 9x.
What PPL’s Latest Chart Indicators and Short Interest Suggest
PPL reported better-than-expected earnings in the second quarter. The company’s earnings grew 6% compared to the same period last year.
Understanding Water Utilities’ Revenue Growth
US water utilities have witnessed flat sales growth for the past couple of years, primarily due to efficiency programs.
What Does SCANA’s Increased Implied Volatility Indicate?
Recently, SCANA became one of the most volatile stocks in the S&P 500 Utilities Index (XLU). On October 3, 2017, SCANA had an implied volatility of 30%.
Will AES’s Unstable Earnings Even out Soon?
AES’s management forecasts an 18% fall in EPS (earnings per share) this year due to currency fluctuations and weaker power prices globally.
These Factors Drove FirstEnergy’s Revenues in 4Q16
FirstEnergy stock rose 1% and closed at $31.33 on its earnings day. The stock has seen some positive momentum during the last few trading sessions.
Why NiSource Investors Should Get Used to Its Low Dividend Yield
Currently, NiSource (NI) is trading at a forward dividend yield of 2.7%.
Utilities Are Trading at a Premium: Is a Correction Possible?
Xcel Energy (XEL), a $21 billion utility, hit an all-time high on March 31, 2016, and closed at $41.82. It has outperformed utilities by a huge margin, rising 20% so far this year.
Will Exelon Beat Analysts’ Revenue Estimates in 4Q16?
Exelon will report its 4Q16 and fiscal 2016 financial results on February 8, 2017. Analysts expect it to report total revenues of $7,488 million for 4Q16.
What Are Institutional Investors Doing with NRG Energy?
Institutional investors decreased their positions in NRG Energy (NRG) in June 2016.
Southern Company and Duke Energy’s Payout Ratios
For the last 12 months, Southern Company’s (SO) payout ratio was ~76%, while Duke Energy’s (DUK) ratio was close to 97%.
Natural Gas Continued Its Dominance over Coal in December 2015
Cheap natural gas has outperformed coal, pushing coal’s share in power generation down to 27.6% in December 2015, compared to natural gas’s ~34% share.
Factors That Could Drive FirstEnergy’s 1Q17 Earnings
FirstEnergy (FE) is estimated to report earnings of $0.74 per share for the quarter ended March 31, 2017. For 1Q16, FirstEnergy reported earnings of $0.80 per share.
Is Energy Transfer a Good Bargain?
Energy Transfer looks relatively expensive compared to its peers. Energy Transfer is trading at a forward EV-to-EBITDA multiple close to 11x.
Will Duke Energy Stock Continue to Recover?
Currently, Duke Energy (DUK) stock is trading 3% above its 50-day moving average and 3% below its 200-day moving average.
NextEra Energy and Dominion Energy: How Do They Stack Up?
US utilities seem to be at a critical juncture at the moment.
Analyzing SCANA’s Valuation, Dividends, and More
SCG is currently trading at an EV-to-EBITDA valuation of 9.5x compared to the utilities’ average of 11.0x.
Where Does PG&E Corporation Stand from a Valuation Standpoint?
Pacific Gas & Electric Corporation (PCG) closed with a minimal gain after the announcement of its quarterly earnings yesterday. PG&E Corporation has managed to rise 6% so far this year.
Is Xcel Energy Poised for Long-Term Growth?
Xcel Energy’s (XEL) capital spending plan and actions to reduce regulatory lags could improve its earnings growth significantly during the next few years.
Dominion Energy and NextEra Energy: Impact on Dividends
Dominion Energy (D) and NextEra Energy (NEE) are both offering double-digit dividend growth for the next few years.
What Could Trigger a Utilities Rally and Help Duke Energy?
So far in 2016, Duke has risen more than 10%, in line with its peer utilities (XLU). The Fed’s status quo on interest rates in its April meeting may prompt a further utilities rally.
These Big Utilities Are Paying Higher Dividends Now
Sempra Energy paid annual dividends totaling $3.02 per share in 2016, while EIX and PCG paid per-share dividends of $1.98 and $1.93, respectively, in 2016.
NextEra Energy Stays Strong in Q2, Profit Rises 13%
Renewables giant NextEra Energy (NEE) has once again shown its mettle, continuing its strong quarterly earnings streak.
How Duke Energy’s Dividend Growth Has Trended
Duke Energy’s (DUK) dividend growth rate in the last five years was well below the industry average.
Kinder Morgan: Analysts’ Views and Target Price
Kinder Morgan is trading at a forward EV-to-EBITDA valuation multiple close to 10.3x, which is lower than many of its peers.
A Look at PPL’s Q3 2018 Earnings and Growth Prospects
PPL Corporation (PPL) is expected to report EPS of $0.56 for the third quarter.
Comparing Sempra Energy and Edison International’s Leverage
At the end of the third quarter, Sempra Energy’s net debt-to-EBITDA ratio was 6.7x—higher than its historical average of ~5x.
Xcel Energy’s Valuation and Total Returns
Xcel Energy’s (XEL) stock outperformed peers in the last year. In this period, it gained more than 8% while the Utilities Select Sector SPDR (XLU) rose more than 2%.
What Could Drive NextEra Energy’s 1Q17 Earnings?
NextEra Energy (NEE) is estimated to report earnings of $1.53 per share for 1Q17. It reported earnings of $1.55 per share in 1Q16.
Utility Stocks Received a Target Price Change Last Week
Analysts seem to be cautious about Xcel Energy stock. RBC raised Xcel Energy’s target price from $49.0 to $53.0 on January 18.
Duke Energy Expects Higher Dividend Growth
Duke Energy (DUK) aims to increase its dividend per share 4%–6% annually for the next few years, which is in line with the industry average.
AES Lowers Guidance amid Strong Dollar, Brazil’s Woes
AES’s (AES) management has lowered its adjusted earnings guidance by $0.10, from $1.05 per share to $0.95 per share for 2016.
Top Utilities’ Total Returns in the Past Year
NextEra Energy (NEE) leads the pack with total returns of 21% in the past year. NextEra Energy increased its dividend per share 13%.
Where Does PG&E Stand from a Valuation Perspective?
All California utilities, including PG&E Corporation, Edison International, and Sempra Energy, have outperformed utilities at large in the last year.
NextEra Energy’s Earnings and Dividend Growth Prospects
Recently, NextEra Energy’s solid earnings growth was reflected in its market performance. NextEra Energy stock has outperformed broader utilities.
Dynegy: Aggressive Expansion Could Get the Stock Back on Track
Dynegy (DYN) has taken an aggressive stance from the last couple of quarters and has added several power generation assets to its current portfolio.
NRG Energy’s Chart Indicators after Its 2Q17 Earnings
NRG Energy (NRG) stock has nearly doubled this year. Currently, it’s trading at a 25% and 48% premium to its 50-day and 200-day moving average levels.
How Energy Transfer Stock Is Placed for the Future
After sailing through rough seas for the past few years, Energy Transfer Equity (ETE) seems to have attractive prospects going forward.
What NRG Energy’s Short Interest Indicates
NRG Energy (NRG) stock has doubled in the last one year.
Analyzing Southern Company Stock
Southern Company reported adjusted earnings of $0.88 per share for 1Q18 and exceeded the consensus estimates.
Figuring Out Which Is Better: Utility Stocks or ETFs?
Though electric sales have shown flattish growth in the last few years, US utilities have managed to distribute stable or increasing dividends.
No Analysts Recommend a “Sell” on Xcel Energy
Of the 18 analysts tracking Xcel Energy, 13 recommend it as a “hold,” five recommend it as a “buy,” and none recommend it as a “sell.”
ETE and WMB: Midstream Giants’ Earnings Growth
Williams Companies (WMB) has very small exposure to the Permian Basin. The company displayed flattish EBITDA growth in the first half of 2018.
Why Brokers Are Positive about NextEra Energy after Its 1Q16 Earnings
Of the 23 analysts tracking NextEra, 18 have given it “buy” recommendations, and five have given it “hold” recommendations. None has recommended a “sell.”
Southern Company Stock Remains Weak amid Vogtle Worries
Southern Company (SO) stock has continued to show weakness recently amid increasing uncertainty regarding the fate of Plant Vogtle.