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Analysts Have Made A Financial Statement On WEC Energy Group, Inc.'s (NYSE:WEC) Full-Year Report

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Shareholders might have noticed that WEC Energy Group, Inc. (NYSE:WEC) filed its annual result this time last week. The early response was not positive, with shares down 2.3% to US$86.82 in the past week. Revenues came in 4.1% below expectations, at US$7.2b. Statutory earnings per share were relatively better off, with a per-share profit of US$3.79 being roughly in line with analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for WEC Energy Group

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from WEC Energy Group's seven analysts is for revenues of US$8.08b in 2021, which would reflect a solid 12% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 5.5% to US$4.01. Before this earnings report, the analysts had been forecasting revenues of US$7.81b and earnings per share (EPS) of US$4.01 in 2021. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of US$94.86, suggesting the analysts are focused on earnings as the driver of value creation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic WEC Energy Group analyst has a price target of US$112 per share, while the most pessimistic values it at US$79.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that WEC Energy Group's rate of growth is expected to accelerate meaningfully, with the forecast 12% revenue growth noticeably faster than its historical growth of 1.2%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.4% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect WEC Energy Group to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at US$94.86, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for WEC Energy Group going out to 2024, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for WEC Energy Group that you need to be mindful of.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.