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WEC Energy (WEC) Beats Q2 Earnings Estimates, Ups '19 View

Zacks Equity Research

WEC Energy Group WEC delivered second-quarter 2019 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 70 cents by 5.71%. The bottom line inched up 1.4% from the year-ago quarter’s tally of 73 cents. The upside can be attributed to the company’s focus on financial discipline and operating efficiency.

Revenues

Total revenues of $1,590.2 million missed the Zacks Consensus Estimate of $1,618 million by 1.72%. The figure was also lower than $1,672.5 million reported in the year-ago quarter.

WEC Energy Group, Inc. Price, Consensus and EPS Surprise

 

WEC Energy Group, Inc. Price, Consensus and EPS Surprise

WEC Energy Group, Inc. price-consensus-eps-surprise-chart | WEC Energy Group, Inc. Quote

 

Highlights of the Release

Residential use of electricity in the second quarter fell 8.9% year over year. Electricity consumption by small commercial and industrial customers declined 5.2%. Electricity utilized by large commercial and industrial customers, excluding iron ore mines, declined 4.1%. Demand for electricity was adversely impacted by very mild weather in service territories.

WEC Energy witnessed an increase in customer base in the reported quarter. At the end of June 2019, the company had an additional 11,000 electric and 23,000 natural gas customers compared with the year-ago quarter’s level.

Natural gas deliveries in Wisconsin, excluding gas utilized for power generation, were down 2.9% year over year.

Total operating expenses dipped 5% year over year to $1,275.6 million.

Operating income in the reported quarter fell 4.8% from the prior-year quarter’s tally to $314.6 million.

Total interest charges and financing costs in the reported quarter rose 14.4% from the prior-year quarter’s figure to $124.1 million.

Financial Position

As of Jun 30, 2019, WEC Energy had cash and cash equivalents of $37.9 million compared with $84.5 million as of Dec 31, 2018.
 
As of Jun 30, 2019, the company had long-term debt of $9,921 million, down from $9,994 million at the end of 2018.

Net cash generated by the company’s operating activities in the first six months of 2019 was $1,291.2 million compared with $1,513.4 million in the year-ago period.

Capital expenditure in the first six months of 2019 was $855.2 million, down from $915.5 million in the year-ago period.

Guidance

The company raised its 2019 earnings per share guidance in the range of $3.50-$3.53 from the previous projection of $3.48-$3.52. The midpoint of the current guidance is $3.52, which is higher than Zacks Consensus Estimate of $3.51.

Zacks Rank

WEC Energy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

American Electric Power Co., Inc AEP reported second-quarter 2019 adjusted EPS of $1.00, which surpassed the Zacks Consensus Estimate of 98 cents by 2%.

NextEra Energy NEE reported second-quarter 2019 adjusted earnings of $2.35 per share, which beat the Zacks Consensus Estimate of $2.28 by 3.1%.

PPL Corporation PPL reported second-quarter 2019 adjusted EPS of 58 cents, which beat the Zacks Consensus Estimate of 56 cents by 3.6%.

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