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What's in the Cards for WEC Energy (WEC) in Q4 Earnings?

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WEC Energy Group (WEC - Free Report) is slated to report fourth-quarter 2017 results before the market opens on Jan 31. In the third quarter, the company reported a positive earnings surprise of 1.49%. Let’s see how things are shaping up for this earnings season.

Factors to Consider

WEC Energy expects its earnings in 2017 to be in the range of $3.06-$3.12 per share. The company is expected to benefit from its cost-control initiatives and efficient use of resources.

More than 99% of its earnings come from regulated operations, which provide excellent visibility on its future performance. Economic growth in its service territories and systematic investment in regulated operation are expected to boost the bottom line. WEC Energy continues to add customers, which is expected to have a positive impact on demand and earnings.

Earnings Whispers

Our proven model does not conclusively show that WEC Energy is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.

Zacks ESP: The company’s Earnings ESP is -0.50%.
 
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: WEC Energy’s Zacks Rank #3, when combined with a negative Earnings ESP makes a beat unlikely this quarter.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies from the  industry that you may want to consider instead, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

Exelon Corporation (EXC - Free Report) is expected to release fourth-quarter 2017 results on Feb 7. The company has an Earnings ESP of +1.32% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CenterPoint Energy Inc. (CNP - Free Report) has an Earnings ESP of +3.75% and a Zacks Rank #2. The company is expected to release fourth-quarter 2017 results on Feb 22.

Westar Energy Inc. has an Earnings ESP of +5.88% and a Zacks Rank #2. The company is expected to release fourth-quarter 2017 results on Feb 28.

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