Hawaiian Electric Industries Crushes Estimates

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Hawaiian Electric Industries (NYS: HE) reported earnings on Feb. 9. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Hawaiian Electric Industries crushed expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly, and GAAP earnings per share expanded significantly.

Gross margins dropped, operating margins contracted, and net margins increased.

Revenue details
Hawaiian Electric Industries reported revenue of $851 million. The three analysts polled by S&P Capital IQ expected net sales of $594.3 million. GAAP sales were 22% higher than the prior-year quarter's $695.7 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.36. The four earnings estimates compiled by S&P Capital IQ averaged $0.36 per share. GAAP EPS of $0.36 for Q4 were 38% higher than the prior-year quarter's $0.26 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 8.8%, 3,230 basis points worse than the prior-year quarter. Operating margin was 8.0%, 50 basis points worse than the prior-year quarter. Net margin was 4.0%, 50 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $703 million. On the bottom line, the average EPS estimate is $0.33.

Next year's average estimate for revenue is $3.10 billion. The average EPS estimate is $1.66.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 148 members rating the stock outperform and 25 members rating it underperform. Among 45 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Hawaiian Electric Industries a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Hawaiian Electric Industries is hold, with an average price target of $24.67.

Over the decades, small-cap stocks, like Hawaiian Electric Industries have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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