Xcel Energy Prepares to Announce Q1 2025 Earnings Amid Mixed Forecasts

Minneapolis-based Xcel Energy Inc. (XEL) operates as a regulated utility company involved in generating, purchasing, transmitting, distributing, and selling electricity and natural gas. With a market capitalization of $39.3 billion, Xcel serves residential, commercial, and industrial customers across multiple states in the U.S. The company is set to release its fiscal Q1 earnings for 2025 before the market opens on Thursday, April 24.

In anticipation of the earnings report, analysts forecast that Xcel Energy will record a profit of $0.96 per share, marking a 9.1% increase from the previous year’s $0.88 per share. Historically, the company has struggled with earnings; it has missed Wall Street’s bottom-line estimates in three of the last four quarters but did exceed expectations on one occasion. In its previous quarter, Xcel reported earnings of $0.81 per share, which fell 6.9% short of consensus expectations.

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Looking ahead, analysts predict Xcel will report an EPS of $3.81 for the full year, an 8.9% growth from $3.50 in fiscal 2024. Furthermore, EPS is projected to grow by 8.4% year-over-year to $4.13 in fiscal 2026.

Over the past year, XEL shares have increased by 27.3%, significantly outperforming both the S&P 500 Index’s ($SPX) 2.1% gain and the Utilities Select Sector SPDR Fund’s (XLU) 16.3% rise.

On February 6, XEL shares dropped by 1.2% after a disappointing Q4 earnings report. The company announced revenues of $3.1 billion, reflecting a 9.4% decline year-over-year, primarily due to reduced sales in both electric and natural gas sectors. This revenue figure also missed analysts’ estimates by 16.1%. Despite this, lower operating expenses and higher income tax benefits propelled net profit up by 9.5% from the previous year to $0.81 per share. However, this figure still fell 6.9% short of expectations, leading to a lukewarm market response. Xcel reaffirmed its fiscal 2025 EPS guidance, estimating a range between $3.75 and $3.85.

Wall Street analysts have expressed strong confidence in Xcel’s stock, assigning it an overall “Strong Buy” rating. Out of 15 analysts covering the stock, 11 recommend “Strong Buy,” while four suggest a “Hold” position. The average price target for Xcel is $75.93, implying an 11% upside potential from its current share price.

On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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