Xcel Energy Earnings Preview: What to Expect

Barchart · 10/17 06:10

Xcel Energy Inc. (XEL), headquartered in Minneapolis, Minnesota, is an energy company specializing in electricity generation, transmission, and distribution. With a market cap of $35.24 billion, Xcel serves millions of residential, commercial, and industrial customers across eight U.S. states. The company is set to release its Q3 earnings before the market opens on Thursday, Oct. 31.

Ahead of the event, analysts expect XEL to report a profit of $1.31 per share, up 6.5% from $1.23 in the year-ago quarter. The company has missed Wall Street's earnings estimates in three of the last four quarters while missing on one another occasion.

Xcel Energy's adjusted earnings of $0.54 per share for the last quarter missed the consensus estimate by 1.8%. Higher operating costs and weaker-than-expected demand drove XEL's Q2 EPS miss.

For fiscal 2024, analysts expect XEL to report EPS of $3.55, up 6% from $3.35 in fiscal 2023.

XEL stock is up 3.4% on a YTD basis, underperforming the broader S&P 500 Index's ($SPX) 22.5% gains and the Utilities Select Sector SPDR Fund's (XLU) 29.8% gain over the same time frame.

XEL stock rose by 1.4% after the release of its Q2 earnings on Aug. 1. The company beat revenue forecasts, posting $3.03 billion compared to the expected $3.28 billion.

The consensus opinion on XEL stock is moderately bullish, with an overall “Moderate Buy” rating. Of 16 analysts covering the stock, eight advise a “Strong Buy” rating, and eight indicate a “Hold.”

XEL's average analyst price target is $67.60, suggesting a potential upside of 5.6% from the current levels.

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On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.