In the wake of a devastating Maui wildfire, Hawaiian Electric Industries (NYSE:HE) has faced significant operational and financial challenges. Today, the company's shares suffered a steep decline, shedding nearly 17% of their value to reach $11.64 during midday trading. This latest drop underscores a year-to-date plummet of 72% in the company's stock price.
The company's CEO, Scott Seu, revealed on Thursday that Hawaiian Electric would suspend its financial outlook due to the unpredictable impacts of the Maui wildfire. In an effort to support those affected by the disaster, the company has established a $75 million fund for wildfire victims. Notably, this fund is sourced from insurance payouts and comes with a condition: recipients must agree not to pursue further compensation through litigation.
Despite these tumultuous circumstances, Hawaiian Electric managed to surpass market expectations with its third-quarter adjusted earnings. The company reported earnings of 56 cents per share, which edged out However, it wasn't all positive news as profits fell to 37 cents per share from 57 cents in the same quarter last year. Additionally, revenue declined by over 13%, totaling $901.9 million.
In response to these events, Hawaiian Electric has also announced a delay in filing its 10-Q report. The company is currently contending with multiple pending lawsuits and has incurred charges amounting to $27.6 million directly related to the wildfire incident.
Investors are now grappling with the uncertainty surrounding Hawaiian Electric as it navigates through the aftermath of the natural disaster and its broader financial implications.
InvestingPro Insights
Diving into the InvestingPro data, Hawaiian Electric Industries has a market cap of 1260M USD and a low P/E ratio of 6.03, indicating that the stock may be undervalued. The P/E ratio adjusted for the last twelve months as of Q2 2023 is slightly higher at 6.71. Despite the recent challenges, the company has shown a strong free cash flow yield, as indicated by the price/book multiple of 0.68.
From the InvestingPro Tips, it is noteworthy that Hawaiian Electric Industries has been on a declining trend in earnings per share, which is in line with the recent fall in profits mentioned in the article. Moreover, the company has maintained dividend payments for 53 consecutive years, a testament to its commitment to shareholders even in the face of adversity.
For those keen on further insights, InvestingPro houses an additional 12 tips and a wealth of metrics related to Hawaiian Electric Industries and other companies. These tips could provide investors with a more comprehensive understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.