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WEC Energy (WEC) Up 4.6% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have added about 4.6% in that time frame, outperforming 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 Q2 Earnings Top Estimates, Revenues Lag
WEC Energy Group reported second-quarter 2024 earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 4.7%. However, the bottom line declined 27.2% from the year-ago quarter’s 92 cents per share.
Revenues
Operating revenues of $1.77 billion missed the Zacks Consensus Estimate of $1.86 billion by around 4.8%. The top line also declined 3.3% from $1.83 billion recorded in the year-ago quarter.
Highlights of the Release
Electricity consumption by small commercial and industrial customers increased 0.3% in the second quarter. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 0.1% on a year-over-year basis.
On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 0.3%.
Total electric sales volume for the quarter was 10,375 thousand megawatt-hours, up 3.4% year over year.
Total operating expenses were $1.41 billion, up 0.2% from the year-ago quarter’s level of $1.4 billion. This was due to high other operation and maintenance.
Operating income totaled $364.8 million, down 14.2% from $425.3 million recorded in the year-ago quarter.
The company incurred an interest expense of $200.6 million, up 12.3% from the prior-year quarter’s level of $178.7 million
Financial Position
As of Jun 30, 2024, WEC had cash and cash equivalents of $224 million compared with $42.9 million as of Dec 31, 2023.
As of Jun 30, 2024, the company had a long-term debt of $16.9 billion compared with $15.5 billion as of Dec 31, 2023
Net cash provided by operating activities during the first six months of 2024 was $1.9 billion compared with $1.75 billion in the year-ago period.
Guidance
WEC reaffirmed its 2024 earnings projection in the range of $4.80-$4.90 per share. The Zacks Consensus Estimate for the same is pegged at $4.88 per share, higher than the midpoint of the company’s guided range.
WEC Energy Group expects to invest $23.7 billion in the 2024-2028 period.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -21.85% due to these changes.
VGM Scores
Currently, WEC Energy has a subpar Growth Score of D, a grade with the same score on the momentum front. 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 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 6.3%. The company reported its results for the quarter ended June 2024 more than a month ago.
PG&E reported revenues of $5.99 billion in the last reported quarter, representing a year-over-year change of +13.2%. EPS of $0.31 for the same period compares with $0.23 a year ago.
PG&E is expected to post earnings of $0.28 per share for the current quarter, representing a year-over-year change of +16.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for PG&E. Also, the stock has a VGM Score of C.
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WEC Energy (WEC) Up 4.6% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have added about 4.6% in that time frame, outperforming 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 Q2 Earnings Top Estimates, Revenues Lag
WEC Energy Group reported second-quarter 2024 earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 64 cents by 4.7%. However, the bottom line declined 27.2% from the year-ago quarter’s 92 cents per share.
Revenues
Operating revenues of $1.77 billion missed the Zacks Consensus Estimate of $1.86 billion by around 4.8%. The top line also declined 3.3% from $1.83 billion recorded in the year-ago quarter.
Highlights of the Release
Electricity consumption by small commercial and industrial customers increased 0.3% in the second quarter. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 0.1% on a year-over-year basis.
On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 0.3%.
Total electric sales volume for the quarter was 10,375 thousand megawatt-hours, up 3.4% year over year.
Total operating expenses were $1.41 billion, up 0.2% from the year-ago quarter’s level of $1.4 billion. This was due to high other operation and maintenance.
Operating income totaled $364.8 million, down 14.2% from $425.3 million recorded in the year-ago quarter.
The company incurred an interest expense of $200.6 million, up 12.3% from the prior-year quarter’s level of $178.7 million
Financial Position
As of Jun 30, 2024, WEC had cash and cash equivalents of $224 million compared with $42.9 million as of Dec 31, 2023.
As of Jun 30, 2024, the company had a long-term debt of $16.9 billion compared with $15.5 billion as of Dec 31, 2023
Net cash provided by operating activities during the first six months of 2024 was $1.9 billion compared with $1.75 billion in the year-ago period.
Guidance
WEC reaffirmed its 2024 earnings projection in the range of $4.80-$4.90 per share. The Zacks Consensus Estimate for the same is pegged at $4.88 per share, higher than the midpoint of the company’s guided range.
WEC Energy Group expects to invest $23.7 billion in the 2024-2028 period.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -21.85% due to these changes.
VGM Scores
Currently, WEC Energy has a subpar Growth Score of D, a grade with the same score on the momentum front. 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, 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 6.3%. The company reported its results for the quarter ended June 2024 more than a month ago.
PG&E reported revenues of $5.99 billion in the last reported quarter, representing a year-over-year change of +13.2%. EPS of $0.31 for the same period compares with $0.23 a year ago.
PG&E is expected to post earnings of $0.28 per share for the current quarter, representing a year-over-year change of +16.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -2.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for PG&E. Also, the stock has a VGM Score of C.