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Why Is WEC Energy (WEC) Up 0.5% Since Last Earnings Report?
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A month has gone by since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is WEC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
WEC Energy Q3 Earnings Beat Estimates, Revenues Lag
WEC Energy Group reported third-quarter 2023 earnings of $1 per share, which beat the Zacks Consensus Estimate of 91 cents by 9.9%. The bottom line also improved 4.2% from the year-ago quarter’s figure of 96 cents.
Revenues
Operating revenues of $1,957.4 million missed the Zacks Consensus Estimate of $2,124 million by around 7.8%. The top line also declined 2.3% from $2,003 million recorded in the year-ago quarter.
Highlights of the Release
Electricity consumption by small commercial and industrial customers was flat year over year. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 4.1% on a year-over-year basis.
On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 0.8% during the same time frame.
Total electric retail sales volume for the quarter was 9,909.1 thousand megawatt-hour (MWh), down 0.9% year over year. Our model predicted total electric retail sales volume of 9,872.8 thousand MWh.
Total electric sales volume for the quarter was 12,647.3 thousand MWh, up 7% year over year. The Zacks Consensus Estimate for the same was pegged at 11, 648.8 thousand MWh.
Total operating expenses were $1,485.4 million, down 7.1% from the year-ago quarter’s level of $1,598.8 million. This was due to lower cost of sales.
Operating income totaled $472 million, up 16.8% from the year-ago quarter’s recorded number of $404.2 million.
The company incurred an interest expense of $182.5 million, up 43.1% from the prior-year quarter’s level of $127.5 million.
Financial Position
As of Sep 30, 2023, WEC had cash and cash equivalents of $45.9 million compared with $28.9 million as of Dec 31, 2022.
As of Sep 30, 2023, the company had a long-term debt of $15,956.5 million compared with $14,766.2 million as of Dec 31, 2022.
Net cash provided by operating activities during the first nine months of 2023 was $2,538.4 million compared with $2,059.5 million in the year-ago period.
Guidance
WEC reaffirmed its 2023 earnings projection in the range of $4.58-$4.62 per share. The midpoint of the range, $4.60 per share, is on par with the Zacks Consensus Estimate.
How Have Estimates Been Moving Since Then?
Estimates revision followed an upward path over the past two months.
VGM Scores
Currently, WEC Energy has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
WEC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
WEC Energy is part of the Zacks Utility - Electric Power industry. Over the past month, PG&E (PCG - Free Report) , a stock from the same industry, has gained 3%. The company reported its results for the quarter ended September 2023 more than a month ago.
PG&E reported revenues of $5.89 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $0.24 for the same period compares with $0.29 a year ago.
For the current quarter, PG&E is expected to post earnings of $0.46 per share, indicating a change of +76.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PG&E. Also, the stock has a VGM Score of B.
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Why Is WEC Energy (WEC) Up 0.5% Since Last Earnings Report?
A month has gone by since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have added about 0.5% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is WEC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
WEC Energy Q3 Earnings Beat Estimates, Revenues Lag
WEC Energy Group reported third-quarter 2023 earnings of $1 per share, which beat the Zacks Consensus Estimate of 91 cents by 9.9%. The bottom line also improved 4.2% from the year-ago quarter’s figure of 96 cents.
Revenues
Operating revenues of $1,957.4 million missed the Zacks Consensus Estimate of $2,124 million by around 7.8%. The top line also declined 2.3% from $2,003 million recorded in the year-ago quarter.
Highlights of the Release
Electricity consumption by small commercial and industrial customers was flat year over year. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 4.1% on a year-over-year basis.
On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 0.8% during the same time frame.
Total electric retail sales volume for the quarter was 9,909.1 thousand megawatt-hour (MWh), down 0.9% year over year. Our model predicted total electric retail sales volume of 9,872.8 thousand MWh.
Total electric sales volume for the quarter was 12,647.3 thousand MWh, up 7% year over year. The Zacks Consensus Estimate for the same was pegged at 11, 648.8 thousand MWh.
Total operating expenses were $1,485.4 million, down 7.1% from the year-ago quarter’s level of $1,598.8 million. This was due to lower cost of sales.
Operating income totaled $472 million, up 16.8% from the year-ago quarter’s recorded number of $404.2 million.
The company incurred an interest expense of $182.5 million, up 43.1% from the prior-year quarter’s level of $127.5 million.
Financial Position
As of Sep 30, 2023, WEC had cash and cash equivalents of $45.9 million compared with $28.9 million as of Dec 31, 2022.
As of Sep 30, 2023, the company had a long-term debt of $15,956.5 million compared with $14,766.2 million as of Dec 31, 2022.
Net cash provided by operating activities during the first nine months of 2023 was $2,538.4 million compared with $2,059.5 million in the year-ago period.
Guidance
WEC reaffirmed its 2023 earnings projection in the range of $4.58-$4.62 per share. The midpoint of the range, $4.60 per share, is on par with the Zacks Consensus Estimate.
How Have Estimates Been Moving Since Then?
Estimates revision followed an upward path over the past two months.
VGM Scores
Currently, WEC Energy has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
WEC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
WEC Energy is part of the Zacks Utility - Electric Power industry. Over the past month, PG&E (PCG - Free Report) , a stock from the same industry, has gained 3%. The company reported its results for the quarter ended September 2023 more than a month ago.
PG&E reported revenues of $5.89 billion in the last reported quarter, representing a year-over-year change of +9.2%. EPS of $0.24 for the same period compares with $0.29 a year ago.
For the current quarter, PG&E is expected to post earnings of $0.46 per share, indicating a change of +76.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.1% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for PG&E. Also, the stock has a VGM Score of B.