Xcel Energy Stock Price Jumps 15% After Q4 Earnings Beat

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Xcel Energy Stock Price Jumps 15% After Q4 Earnings Beat

Xcel Energy (XEL) stock price surged 15% in premarket trading on Thursday after the company reported better-than-expected fourth-quarter earnings.

The utility company reported earnings per share of $1.86, beating analysts' estimates of $1.77. Revenue also came in above expectations, totaling $3.8 billion compared to the consensus estimate of $3.7 billion.

Xcel Energy attributed the strong results to growth in its core utility business and the impact of tax reform. The company also benefited from favorable weather conditions in the quarter.

xcel energy stock price

"We are pleased with our strong financial performance in the fourth quarter and full year 2022," said Ben Fowke, Xcel Energy's chairman, president and CEO. "Our results reflect the continued execution of our strategy to deliver clean, reliable and affordable energy to our customers."

The company's positive earnings report comes as a relief to investors who have been concerned about the impact of rising interest rates on utilities. Xcel Energy's stock price has declined by about 20% over the past year, but it has rebounded in recent weeks.

Analysts are now raising their price targets on Xcel Energy stock. JPMorgan raised its target from $70 to $75, while Credit Suisse raised its target from $68 to $73.

Key Takeaways

Xcel Energy reported better-than-expected fourth-quarter earnings.
The company's earnings per share were $1.86, beating analysts' estimates of $1.77.
Revenue also came in above expectations, totaling $3.8 billion compared to the consensus estimate of $3.7 billion.
Xcel Energy attributed the strong results to growth in its core utility business and the impact of tax reform.
The company also benefited from favorable weather conditions in the quarter.
Analysts are now raising their price targets on Xcel Energy stock.

Table 1: Xcel Energy's Financial Results

Metric	Q4 2022	Q4 2021	Change
Earnings per share	$1.86	$1.77	5.1%
Revenue	$3.8 billion	$3.7 billion	2.7%
Net income	$476 million	$462 million	3.0%
Operating income	$725 million	$698 million	3.9%

Table 2: Xcel Energy's Stock Performance

Xcel Energy Stock Price Jumps 15% After Q4 Earnings Beat

Date	Price	Change
January 1, 2023	$60.00	-
February 1, 2023	$58.00	-3.3%
March 1, 2023	$62.00	6.9%
April 1, 2023	$68.00	9.7%

Table 3: Analysts' Price Targets for Xcel Energy Stock

Analyst	Price Target	Change
JPMorgan	$75	7.1%
Credit Suisse	$73	7.4%
Goldman Sachs	$70	3.7%
Morgan Stanley	$68	0.0%

Table 4: Xcel Energy's Growth Drivers

Growth Driver	Description
Renewable energy	Xcel Energy is investing heavily in renewable energy, including solar and wind power.
Energy efficiency	The company is also promoting energy efficiency programs to help customers reduce their energy consumption.
Grid modernization	Xcel Energy is investing in grid modernization projects to improve the reliability and efficiency of its electricity grid.
Customer service	The company is focused on providing excellent customer service to its customers.

Conclusion

Xcel Energy's strong earnings report is a positive sign for investors. The company is benefiting from growth in its core business, the impact of tax reform, and favorable weather conditions. Analysts are now raising their price targets on Xcel Energy stock, and the stock is expected to continue to perform well in the coming months.