Xcel Energy Reports Inline Q1 Earnings, Revenue Misses

Xcel Energy Inc. XEL reported 58.6 percent rise in net income for the first quarter driven by 12.6 percent drop in its operating expenses. However, the revenue witnessed 6.4 percent fall and came in below the Street expectations though the profit was in line with the predictions.

Xcel energy revealed net income of $241 million for the first quarter, up $58.6 percent from $152 million while earnings jumped 56.7 percent to $0.47 a share from $0.30 a share in the prior year quarter. However, its ongoing earnings grew only 4.33 percent to $241 million from $231 million and earnings per share to $0.47 from $0.46 in the corresponding period last year. The company's profit growth was driven by control in operating expenses to $2.28 billion, down 12.6 percent from $2.61 billion in the corresponding quarter last year.

The company's top line fell 6.4 percent to $2.77 billion from $2.96 billion in the previous year quarter. Street analysts expected the company to report earnings of $0.47 a share and revenue of $3.00 billion.

Xcel energy said electric and gas margins rose due to an increase in retail electric and natural gas rates across various jurisdictions, non-fuel riders and a drop in operating and maintenance expenses. These positive factors were partly compensated by higher depreciation, interest charges, property taxes and the negative impact of weather.

The company's Chairman, President and CEO, Ben Fowke, said, "While we experienced unfavorable weather and lower than anticipated sales in the first quarter, lower O&M expenses allowed us to deliver solid quarterly results. We will continue our disciplined approach to managing costs and continue to expect to achieve ongoing earnings within our 2016 guidance range."

He continued, "I'm excited about the proposal we are planning to submit to construct, own and operate 600 megawatts of wind generation in Colorado. This $1 billion investment should deliver significant value to our customers and is structured to greatly enhance the local economy and the environment. We continue to develop and execute our capital investment plans that will organically grow the company. I'm looking forward to the rest of 2016 and beyond."