Hawaiian Electric Industries (NYSE:HE) Issues Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Hawaiian Electric Industries (NYSE:HE) released its earnings results on Friday. The utilities provider reported $0.13 EPS for the quarter, missing analysts’ consensus estimates of $0.21 by ($0.08), FiscalAI reports. Hawaiian Electric Industries had a net margin of 4.19% and a return on equity of 9.03%. The firm had revenue of $939.70 million during the quarter, compared to the consensus estimate of $939.70 million. During the same period in the prior year, the company earned $0.15 EPS.

Here are the key takeaways from Hawaiian Electric Industries’ conference call:

• Wildfire mitigation costs may be securitized rather than primarily added to rate base, potentially lowering customer financing costs. HEI plans to seek a financing order later this year for approximately $350 million of approved WMP spending.
• HEI’s credit profile improved, with S&P upgrading both HEI and Hawaiian Electric to BB- in July, following Moody’s one-notch upgrade in April. The company cited progress in reducing wildfire risk and maintaining approximately $1.3 billion of consolidated liquidity.
• The company resubmitted its rate rebasing request, seeking a total $170 million base-rate increase phased in over two years, including $125 million beginning in 2027. HEI has requested an interim decision by December 2026, while a final decision is expected in April 2027.
• Second-quarter core net income fell to $22.5 million, or $0.13 per share, from $35.4 million, or $0.20, a year earlier. Results were pressured by higher interest expense, vegetation management and maintenance costs, storm response spending, insurance premiums, and other O&M increases.
• HEI is advancing large competitive procurements to meet rising demand and modernize generation, including renewable, storage, and firm-capacity resources. The PUC, however, requested a more thorough demonstration of need before considering HEI’s proposal for up to 500 megawatts of additional firm generation on O?ahu.

Hawaiian Electric Industries Trading Down 0.7%

Shares of NYSE:HE opened at $12.40 on Friday. The stock’s 50-day simple moving average is $13.28 and its two-hundred day simple moving average is $14.47. Hawaiian Electric Industries has a 52-week low of $10.60 and a 52-week high of $17.38. The company has a debt-to-equity ratio of 1.70, a quick ratio of 1.34 and a current ratio of 1.34. The stock has a market capitalization of $2.14 billion, a price-to-earnings ratio of 9.54 and a beta of 0.50.

Analyst Ratings Changes

Several brokerages have weighed in on HE. Weiss Ratings upgraded Hawaiian Electric Industries from a “sell (d)” rating to a “sell (d+)” rating in a research report on Monday, July 20th. Zacks Research cut Hawaiian Electric Industries from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 6th. Barclays decreased their target price on Hawaiian Electric Industries from $14.00 to $13.00 and set an “equal weight” rating for the company in a research report on Thursday, June 25th. Jefferies Financial Group lowered their target price on Hawaiian Electric Industries from $13.75 to $11.75 and set an “underperform” rating for the company in a research note on Monday, July 6th. Finally, Wall Street Zen lowered Hawaiian Electric Industries from a “buy” rating to a “hold” rating in a research report on Saturday, April 11th. Two equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat, the company presently has a consensus rating of “Reduce” and a consensus price target of $12.38.

Institutional Trading of Hawaiian Electric Industries

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in HE. Invesco Ltd. increased its stake in shares of Hawaiian Electric Industries by 160.8% in the fourth quarter. Invesco Ltd. now owns 682,036 shares of the utilities provider’s stock worth $8,389,000 after purchasing an additional 420,560 shares in the last quarter. Corient Private Wealth LLC raised its stake in Hawaiian Electric Industries by 189.3% during the 4th quarter. Corient Private Wealth LLC now owns 166,472 shares of the utilities provider’s stock valued at $2,048,000 after purchasing an additional 108,932 shares during the period. Mercer Global Advisors Inc. ADV lifted its holdings in Hawaiian Electric Industries by 45.9% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 59,899 shares of the utilities provider’s stock worth $737,000 after purchasing an additional 18,855 shares in the last quarter. JCP Investment Management LLC boosted its stake in Hawaiian Electric Industries by 18.1% in the 4th quarter. JCP Investment Management LLC now owns 425,000 shares of the utilities provider’s stock worth $5,228,000 after purchasing an additional 65,000 shares during the period. Finally, State of Tennessee Department of Treasury bought a new position in Hawaiian Electric Industries in the 4th quarter worth approximately $834,000. 59.91% of the stock is owned by hedge funds and other institutional investors.

About Hawaiian Electric Industries

Hawaiian Electric Industries, Inc is a diversified holding company operating in the energy and financial services sectors in the state of Hawaii. Its principal subsidiary, Hawaiian Electric Company, provides generation, transmission, distribution and customer service to the island of Oahu, while its Maui Electric and Hawaii Electric Light Company subsidiaries serve Maui, Molokai, Lanai and Hawaii Island. The roots of the electric utility business trace back to 1891 when service first commenced in Honolulu.

Through its subsidiary Hawaii Gas, HEI extends its energy portfolio to include the distribution of natural gas and propane, supporting residential, commercial and industrial customers across the islands.