Based in Minneapolis, Minnesota, Xcel Energy Inc. (XEL) is a leading energy company specializing in electricity generation, transmission, and distribution. Valued at a market cap of $38.3 billion, Xcel serves millions of residential, commercial, and industrial customers across eight U.S. states. The company is set to release its Q4 earnings before the market opens on Thursday, Jan. 23.
Ahead of the event, analysts expect XEL to report a profit of $0.87 per share, up 4.8% from $0.83 in the year-ago quarter. The company has missed Wall Street's earnings estimates in three of the last four quarters while beating on one another occasion.
For fiscal 2024, analysts expect XEL to report EPS of $3.54, up 5.7% from $3.35 in fiscal 2023. Its fiscal 2025 EPS is projected to grow 7.9% year over year to $3.82.
Over the past year, XEL has surged 4.9%, underperforming the broader S&P 500 Index's ($SPX) 26.3% gains and the Utilities Select Sector SPDR Fund's (XLU) 19.5% gain over the same time frame.
Despite Xcel Energy missing Wall Street's earnings and revenue expectations, its stock surged 6% following the Q3 earnings release on Oct. 31. The company reaffirmed its FY 2024 adjusted EPS guidance of $3.50 to $3.60 and introduced a 2025 EPS guidance range of $3.75 to $3.85, boosting investor confidence. Additionally, Xcel stands to benefit from new customer growth and rising demand from data centers, further strengthening its outlook for the coming quarters.
The consensus opinion on XEL stock is moderately bullish, with an overall “Moderate Buy” rating. Of 16 analysts covering the stock, 10 advise a “Strong Buy” rating, and six indicate a “Hold.”
XEL's average analyst price target is $73.07, suggesting a potential upside of 9.6% from the current levels.
