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WEC Energy (WEC) Q4 Earnings Beat Estimates, Revenues Miss

Zacks Equity Research
·4 min read

WEC Energy Group WEC delivered fourth-quarter 2019 adjusted earnings per share  of 77 cents, which beat the Zacks Consensus Estimate of 72 cents by 6.94%. The bottom line increased from the year-ago quarter’s tally of 65 cents by 18.5%.

In 2019, the company generated earnings of $3.58 per share compared with adjusted earnings of $3.34 per share in 2018.

Revenues

Total revenues amounted to $1,947.5 million, which missed the Zacks Consensus Estimate of $2,113 million by 7.83%. The reported figure declined from $2,076.8 million in the year-ago quarter.

The company generated $7,523.1 million revenues in 2019, down 2.03% from $7,679.5 million in 2018.

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

 

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 2019 fell 2.5% year over year. Electricity consumption by small commercial and industrial customers declined 2.5% year on year. Electricity used by large commercial and industrial customers, excluding iron ore mines, dropped 3.5% on a year-over-year basis. On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, inched down 1.7%.

Natural gas deliveries in Wisconsin, excluding gas used for power generation, moved up 2.6% during 2019. On a weather-normal basis, natural gas deliveries improved 1.8%.

At the end of 2019, the company had an additional 10,000 electric and 14,000 natural gas customers compared with the year-ago quarter’s level.

Financial Position

As of Dec 31, 2019, WEC Energy had cash and cash equivalents of $37.5 million compared with $84.5 million as of Dec 31, 2018.
 
As of Dec 31, 2019, the company had long-term debt of $11.2 billion, up almost 12.2% from 2018-end level.

The company’s net cash provided by operating activities at the end of 2019 was $2.3 billion compared with $2.4 billion in the year-ago period.

Capital expenditure at the end of 2019 was $2.3 billion, up from $2.1 billion a year ago.

Guidance

The company reaffirmed 2020 earnings per share guidance in the range of $3.71-$3.75. The projection is in line with its long-term objective of achieving earnings growth rate of 5-7% on an annual basis. The midpoint of the current guidance is $3.73, which is lower than the Zacks Consensus Estimate of $3.74.

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 Utility Releases

Xcel Energy XEL posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.

NextEra Energy NEE reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

CMS Energy Corporation CMS reported fourth-quarter 2019 adjusted earnings of 68 cents, which missed the Zacks Consensus Estimate of 69 cents.

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