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HE NYSE· Hawaiian Electric Industries, Inc
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HE NYSE· Hawaiian Electric Industries, Inc
Earnings report Q3 2023

HE Reports Decrease in Revenue for Latest Quarter

Segments of revenue

In the third quarter of 2023, HE reported total revenues of $901.9 million, a decrease of 13% compared to the same period in 2022. The electric utility segment experienced a decrease in revenue, partially offset by increases in the bank and "other" segments.

Strengths

Despite the overall decrease in revenue, the company highlighted that interest income at the corporate level contributed to higher revenues in the third quarter of 2023 compared to the same period in 2022. Additionally, there was an increase in other sales at Pacific Current subsidiaries, which contributed to higher revenues for the nine months ended September 30, 2023, compared to the same period in 2022.

Challenges

The company faced an operating loss of $8.8 million in the third quarter of 2023, compared to a loss of $4.0 million in the same period in 2022. This was primarily due to lower asset performance at Pacific Current, which resulted in lower operating income. Furthermore, corporate expenses in the third quarter of 2023 were $3.4 million higher than the same period in 2022, mainly due to costs related to Maui windstorm and wildfires.

Noteworthy

It is worth noting that the company's effective tax rate decreased from 22% in the third quarter of 2022 to 15% in the third quarter of 2023. This decrease in the effective tax rate may have contributed to the lower net income for common stock in the latest quarter.

Summary

HE reported a decrease in revenue for the third quarter of 2023, primarily driven by a decrease in the electric utility segment. However, the company's financial performance was supported by interest income at the corporate level and an increase in other sales at Pacific Current subsidiaries. The company faced challenges with an operating loss and higher corporate expenses, partly due to costs related to Maui windstorm and wildfires. The decrease in the effective tax rate also impacted the net income for common stock. Overall, HE's latest quarter performance reflects a mixed outcome with both strengths and challenges.

Source documents

Form 10-Q  filed on Nov 13, 2023
98 pages scanned

Reference data

Company financials Q3 revenue 961M
Analyst estimates Q3 EPS missed by -2.04%
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