MINNEAPOLIS - Xcel Energy Inc. (NASDAQ:XEL) today announced first-quarter financial results, posting an adjusted earnings per share (EPS) of $0.88 for the first quarter of 2024, which surpassed analyst estimates by $0.08.
However, the company's revenue of $3.65 billion fell short of the consensus estimate of $4.16 billion. XEL stock was up 0.49% in premarket trading.
The reported adjusted EPS of $0.88 for the first quarter represents an increase from the $0.76 reported in the first quarter of the previous year. This improvement in EPS is attributed to the increased recovery of infrastructure investments and reduced operations and maintenance (O&M) expenses, though these were partially offset by higher interest charges and depreciation.
Bob Frenzel, chairman, president, and CEO of Xcel Energy, commented on the company's commitment to the communities affected by the Texas Panhandle wildfires and outlined the company's ongoing efforts in wildfire mitigation and system resiliency. He emphasized the implementation of preventive power shutoffs during high-risk conditions and accelerated inspections and replacements of poles as part of their wildfire risk reduction initiatives.
For the future, Xcel Energy reaffirmed its 2024 EPS guidance, projecting a range of $3.50 to $3.60 per share. This guidance is consistent with the company's long-term objectives, which include delivering annual EPS growth of 5% to 7% based on the 2023 ongoing earnings base of $3.35 per share, along with annual dividend increases in the same range.
Despite the positive EPS outcome, the company's revenue saw a decline compared to the same quarter last year, when it reported $4.08 billion. This year-over-year decrease in revenue is primarily due to lower natural gas revenues, which declined by $347 million, reflecting the recovery of lower costs of natural gas and the impact of milder weather conditions.
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