HE Earnings Prediction
The chart below shows how HE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, HE sees a +1.83% change in stock price 10 days leading up to the earnings, and a -9.31% change 10 days following the report. On the earnings day itself, the stock moves by -0.92%. This data can give you a slight idea of what to expect for the next quarter's release.
HE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
938.38M
4.05%
4.57%
Gross Margin
11.88%
42.62%
42.11%
Operating Margin
11.88%
42.62%
42.11%
Net Margin
-11.08%
-340.35%
-92.32%
EPS
-0.91
-345.95%
-92.25%
No Data Available
HE Earnings Analysis
Hawaiian Electric Industries, Inc. Corporation (HE.N) Earnings Conference Call
Positive
Equity Offering Success: 1. Successful Equity Offering: HEI closed a common stock offering in September, generating approximately $558 million in net proceeds to support the settlement payment and general corporate purposes.
Core Net Income Increase: 2. Strong Bank Performance: American Savings Bank reported a core net income of $19.4 million for the third quarter, up from $17.6 million in the same quarter last year, driven by lower provisions for credit losses and higher non-interest income.
Cash Reserves and Liquidity: 3. Cash Reserves: As of the end of Q3, HEI's holding company had approximately $678 million in cash, ensuring sufficient liquidity to fund the first settlement payment and address other corporate needs.
Wildfire Risk Management: 4. Operational Resilience: The utility has deployed 55 new weather stations and installed 39 AI-enhanced video cameras to improve situational awareness, enhancing its ability to manage wildfire risks effectively.
Wildfire Mitigation Progress: 5. Progress in Wildfire Mitigation: The utility inspected over 37,000 poles and replaced approximately 2,200 poles as part of its grid hardening efforts, significantly increasing resilience against environmental risks.
Negative
Net Loss Reported: 1. Significant Net Loss: HEI reported a consolidated net loss of $104.4 million or $0.91 per share for Q3 2024, reflecting substantial financial strain.
Wildfire Liability Increase: 2. Increased Wildfire Liabilities: The company recorded an additional $203 million pre-tax loss for the accrual of estimated wildfire liabilities, adding to the previously accrued $1.71 billion.
Utility Net Income Decline: 3. Decline in Utility Core Net Income: Utility core net income decreased to $43.7 million in Q3 2024 from $53.8 million in the same quarter last year, primarily due to higher operating and maintenance costs.
Asset Impairment Charge: 4. Asset Impairment Charge: A $35.2 million pre-tax asset impairment was recorded for Pacific Current, indicating a decline in asset value amid ongoing strategic reviews.
Increased Operating Expenses: 5. Higher Operating Expenses: The utility experienced higher operating and maintenance expenses, including $2.6 million related to settlement administration fees and increased insurance premiums, contributing to overall financial pressure.
HE FAQs
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HE Earning Call Sentiment
Hawaiian Electric Industries, Inc. (HE) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
HE.N
0.88%Positive
The earnings call reveals significant challenges: a consolidated net loss and utility net income decline due to wildfire liabilities, asset impairments, and operational expenses. While there is a successful equity offering, the need for settlement payments and strategic reviews adds uncertainty. The Q&A highlights management's evasiveness on key issues, particularly around Pacific Current. Despite some positive elements, such as increased bank net income, the overall financial health and strategic uncertainties suggest a negative sentiment, likely leading to a stock price decline in the short term.
