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WEC Energy (WEC) Q3 Earnings Top Estimates, Revenues Miss

Zacks Equity Research

WEC Energy Group WEC delivered third-quarter 2019 adjusted earnings of 74 cents per share, which beat the Zacks Consensus Estimate of 73 cents by 1.4%. The bottom line was flat on a year-over-year basis.

Revenues

Total revenues of $1,608 million missed the Zacks Consensus Estimate of $1,665 million by 3.4%. Also, the figure declined from $1,643.7 million reported in the year-ago quarter.

Highlights of the Release

Residential use of electricity in the third quarter fell 3.8% year over year. Electricity consumption by small commercial and industrial customers declined 3.4% year on year. Electricity utilized by large commercial and industrial customers fell 4.3% on a year-over-year basis. Excluding iron ore mines, electricity utilized by large commercial and industrial customers declined 5.6%. Demand for electricity was affected by milder-than-normal weather in service territories. Moreover, destructive July storms that included nine tornadoes made extensive damage to the company’s distribution network.

WEC Energy witnessed an increase in customer base in the reported quarter. At the end of September 2019, the company had an additional 10,000 electric and 21,000 natural gas customers compared with the year-ago quarter’s level.

Total operating expenses dipped 3.3% year over year to $1,297.1 million.

Operating income in the reported quarter rose 2.7% from the prior-year quarter’s tally to $310.9 million.

Total interest expenses in the reported quarter rose 12.3% from the prior-year quarter’s figure to $125.8 million.

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

 

Financial Position

As of Sep 30, 2019, WEC Energy had cash and cash equivalents of $20 million compared with $84.5 million as of Dec 31, 2018.
 
As of Sep 30, 2019, the company had long-term debt of $10,897.3 million, up from $9,994 million at the end of 2018.

Net cash generated by the company’s operating activities in the first nine months of 2019 was $1,840.7 million compared with $2,008.2 million in the year-ago period.

Capital expenditure in the first nine months of 2019 was $1,511.5 million, up from $1,490.5 million in the year-ago period.

Guidance

Previously, the company projected its 2019 earnings per share (EPS) guidance in the range of $3.50-$3.53. Currently, 2019 EPS is expected in the range of $3.51-$3.53. The midpoint of the current guidance is $3.52, which is lower than the Zacks Consensus Estimate of $3.53.

Zacks Rank

WEC Energy has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Releases

NextEra Energy, Inc NEE reported third-quarter 2019 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.27 by 5.3%.

Xcel Energy Inc XEL posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%.

American Electric Power Co., Inc AEP reported third-quarter 2019 adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.

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