Xcel Energy Inc. XEL reported first-quarter 2025 operating earnings of 84 cents per share, which lagged the Zacks Consensus Estimate of 93 cents by 9.7%. The bottom line also decreased 4.5% from the year-ago quarter’s figure of 88 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news)

The year-over-year decline in earnings per share was due to higher operations and maintenance expenses, along with increased depreciation and interest charges, which were partially offset by improved recovery of infrastructure investments.

It reported GAAP earnings of 84 cents per share compared with 88 cents in the year-ago quarter.

Total Revenues of XEL

Revenues of $3.9 billion missed the Zacks Consensus Estimate of $3.92 billion by 0.4%. However, the figure increased 7.1% from the year-ago quarter’s $3.65 billion.

XEL’s Segmental Results

Electric: This segment’s revenues totaled $2.83 billion, up 5.6% from $2.68 billion in the year-ago quarter.

Natural Gas: Revenues in this segment increased 12.1% to $1.05 billion from $0.94 billion in the year-ago quarter.

Other: Revenues amounted to $16 million compared with $23 million in the prior-year quarter.

Highlights of XEL’s Earnings Release

Total operating expenses increased 8.7% year over year to $3.23 billion. This can be attributed to higher electric fuel and purchased power costs and the cost of natural gas sold and transported. Higher operating and maintenance, along with depreciation and amortization expenses, resulted in a year-over-year increase in operating expenses.

Operating income decreased 2.9% year over year to $677 million.

Total interest charges and financing costs rose 11.6% from the prior-year quarter’s $277 million to $309 million.

In the first quarter, Xcel Energy registered 1.1% growth in electric customer volume and a 0.9% increase in natural gas customer volume. In the same time frame, natural gas sales increased 0.5% from the year-ago period’s level and electric sales volume increased 1.9%.

XEL’s Guidance

Xcel Energy reaffirmed its projection for 2025 earnings per share in the range of $3.75-$3.85. The Zacks Consensus Estimate is pegged at $3.81, a tad higher than the midpoint of the guided range of $3.80 per share.

XEL estimates retail electric sales to increase 3% in 2025. Natural gas sales volumes are anticipated to increase 1% from the year-ago level.

Xcel Energy plans to invest $45 billion in 2025-2029 to further strengthen its infrastructure.

XEL’s Zacks Rank

XEL currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Pinnacle West Capital Corporation PNW is scheduled to announce first-quarter 2025 results on May 1. The Zacks Consensus Estimate for earnings is pegged at 3 cents per share.

Pinnacle West Capital’s long-term (three to five years) earnings growth rate is estimated at 2.12%. The Zacks Consensus Estimate for first-quarter earnings per share indicates a decline of 80% from the year-earlier level.

Dominion Energy D is scheduled to announce first-quarter 2025 results on May 1. The Zacks Consensus Estimate for earnings is pegged at 76 cents per share.

Dominion’s long-term earnings growth rate is estimated at 13.59%. The Zacks Consensus Estimate for first-quarter earnings per share indicates an increase of 38.18% from the year-earlier level.

The Southern Company SO is scheduled to announce first-quarter 2025 results on May 1. The Zacks Consensus Estimate for earnings per share is pegged at $1.17.

SO’s long-term earnings growth rate is 6.48%. The Zacks Consensus Estimate for first-quarter earnings per share indicates an increase of 13.59% from the prior-year actual.
 

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