Xcel Energy Inc. (XEL), headquartered in Minneapolis, Minnesota, generates, purchases, transmits, distributes, and sells electricity. Valued at $29.97 billion by market cap, the company produces electricity through wind, nuclear, hydroelectric, biomass, solar, coal, and natural gas sources. It powers millions of homes and businesses across eight Western and Midwestern states. The electric and natural gas energy company is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Aug. 1.
Ahead of the event, analysts expect XEL to report a profit of $0.50 per share on a diluted basis, down 3.9% from $0.52 per share in the year-ago quarter. The company missed the consensus estimates in three of the last four quarters while beating on another occasion. During the previous quarter, XEL recorded a pre-tax charge of $215 million, calling it the low end of the range.
For fiscal 2024, analysts expect XEL to report EPS of $3.56, up 6.3% from $3.35 in fiscal 2023.
XEL stock has significantly underperformed the S&P 500’s ($SPX) 18.8% gains on a YTD basis, with shares down 11.9% during this period. Similarly, it underperformed the S&P 500 Utilities Sector SPDR’s (XLU) 10.7% gains over the same time frame.
On Apr. 25, XEL reported its Q1 results. Its EPS was $0.88, surpassing the consensus estimates of $0.80. The company’s revenue stood at $3.65 billion, falling short of Wall Street expectations of $4.01 billion. XEL expects full-year EPS to be between $3.50 and $3.60. XEL’s overall underperformance can be attributed to its mounting wildfire liabilities, leading to several lawsuits. XEL shares closed down marginally on the day the results were released and have been on a downtrend since then.
On Mar. 11, XEL shares gained more than 1% in pre-market trading after Wolfe Research upgraded the stock from Peer Perform to Outperform with a price target of $58.
On Mar. 7, XEL shares closed up more than 3% after the utility company acknowledged that its equipment was likely involved in igniting the Smokehouse Creek fire. However, it refuted allegations that it had acted negligently.
Analysts’ consensus opinion on XEL stock is bullish, with a “Moderate Buy” rating overall. Out of 14 analysts covering the stock, seven advise a “Strong Buy” rating, and seven recommend a “Hold.” The average analyst price target for XEL is $62.54, indicating a 16% potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
