WEC Energy (WEC) Q3 Earnings Beat Estimates, Revenues Lag
WEC Energy Group WEC 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.
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
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.
Zacks Rank
WEC Energy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
NRG Energy, Inc. NRG is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.53 per share.
NRG’s long-term (three to five years) earnings growth rate is 10.26%. The consensus mark for 2023 EPS is pegged at $5.15, implying year-over-year growth of 96.6%.
Exelon Corporation EXC is scheduled to report third-quarter results on Nov 2, before market open. The Zacks Consensus Estimate for earnings is pegged at 68 cents per share.
EXC’s long-term earnings growth rate is 6.3%. The consensus mark for 2023 EPS is pegged at $2.35, implying year-over-year growth of 3.5%.
Alliant Energy LNT is scheduled to report third-quarter results on Nov 2, after market close. The Zacks Consensus Estimate for earnings is pinned at 92 cents per share.
LNT’s long-term earnings growth rate is 6.26%. The consensus mark for 2023 EPS is pinned at $2.86, implying a year-over-year improvement of 2.1%.
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