Hawaiian Electric Industries (NYSE:HE) Releases Earnings Results, Misses Expectations By $0.08 EPS

Hawaiian Electric Industries (NYSE:HE) posted its quarterly earnings data on Friday. The utilities provider reported $0.13 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.21 by ($0.08), FiscalAI reports. Hawaiian Electric Industries had a return on equity of 9.03% and a net margin of 4.19%.The firm had revenue of $939.70 million for the quarter, compared to the consensus estimate of $745.92 million. During the same period in the prior year, the company posted $0.15 earnings per share.

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 Oʻahu.

Hawaiian Electric Industries Stock Performance

HE stock traded down $0.09 on Friday, reaching $12.40. 2,472,910 shares of the company were exchanged, compared to its average volume of 1,520,704. The firm has a market capitalization of $2.14 billion, a PE ratio of 16.76 and a beta of 0.50. Hawaiian Electric Industries has a 12 month low of $10.60 and a 12 month high of $17.38. The stock’s fifty day moving average price is $13.28 and its 200 day moving average price is $14.47. The company has a debt-to-equity ratio of 1.70, a current ratio of 1.34 and a quick ratio of 1.34.

Institutional Trading of Hawaiian Electric Industries

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Federated Hermes Inc. boosted its stake in shares of Hawaiian Electric Industries by 1.3% during the 2nd quarter. Federated Hermes Inc. now owns 72,891 shares of the utilities provider’s stock worth $775,000 after acquiring an additional 910 shares during the period. Xponance LLC raised its stake in Hawaiian Electric Industries by 5.7% in the 4th quarter. Xponance LLC now owns 17,022 shares of the utilities provider’s stock valued at $209,000 after acquiring an additional 918 shares during the period. Evergreen Capital Management LLC raised its stake in Hawaiian Electric Industries by 8.0% in the 2nd quarter. Evergreen Capital Management LLC now owns 17,355 shares of the utilities provider’s stock valued at $184,000 after acquiring an additional 1,281 shares during the period. Northwestern Mutual Wealth Management Co. raised its stake in Hawaiian Electric Industries by 142.2% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 2,325 shares of the utilities provider’s stock valued at $26,000 after acquiring an additional 1,365 shares during the period. Finally, Comerica Bank lifted its holdings in Hawaiian Electric Industries by 45.0% during the 3rd quarter. Comerica Bank now owns 5,779 shares of the utilities provider’s stock valued at $64,000 after purchasing an additional 1,793 shares during the last quarter. 59.91% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of research firms have weighed in on HE. Zacks Research lowered shares of Hawaiian Electric Industries from a “strong-buy” rating to a “hold” rating in a research report on Wednesday, May 6th. Wall Street Zen downgraded Hawaiian Electric Industries from a “buy” rating to a “hold” rating in a research report on Saturday, April 11th. Weiss Ratings upgraded Hawaiian Electric Industries from a “sell (d)” rating to a “sell (d+)” rating in a research note on Monday, July 20th. Barclays cut their price objective 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. Finally, Jefferies Financial Group decreased 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. Two equities research analysts have rated the stock with a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Reduce” and a consensus price target of $12.38.

Hawaiian Electric Industries Company Profile

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.