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WEC Energy Group (WEC - Free Report) delivered third-quarter 2021 earnings per share of 92 cents, which beat the Zacks Consensus Estimate of 82 cents by 12.2%. Also, the bottom line improved 9.5% from the year-ago quarter’s 84 cents per share.
Results benefited from economic recovery, operating efficiency and warmer-than-expected weather.
Revenues
Operating revenues of $1,746.5 million topped the Zacks Consensus Estimate of $1,684 million by 3.7%. Also, the top line grew 5.8% from $1,651 million in the year-ago quarter.
WEC Energy Group, Inc. Price, Consensus and EPS Surprise
In the third quarter of 2021, residential use of electricity rose 0.3% year over year. Electricity consumption by small commercial and industrial customers increased 3.5% year over year. Electricity used by large commercial and industrial customers excluding iron ore mines improved 3.8% on a year-over-year basis. On a weather-normal basis, retail deliveries of electricity excluding the iron ore mine went up 2.5%.
Natural gas deliveries in Wisconsin excluding gas used for power generation moved up 1% during the reported quarter. On a weather-normal basis, natural gas deliveries rose 2.5%.
Total operating expenses for the third quarter amounted to $1,356.5 million, up 5.9% from the year-ago quarter’s $1,280.8 million.
Operating income came in at $390 million, increasing 5.3% from the prior-year period’s $370.2 million.
At the end of third-quarter 2021, the company was serving additional 8,000 electric and 15,000 natural gas customers from the year-ago quarter's levels.
Financial Position
As of Sep 30, 2021, WEC Energy had cash and cash equivalents of $26 million compared with $24.8 million as of Dec 31, 2020.
As of Sep 30, 2021, the company had long-term debt of $12,678.1 million compared with $11,728.1 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first nine months of 2021 was $2,006.7 million compared with $1,949.7 million in the comparable period of 2020.
Capital expenditure in the first three quarters was $1,627.9 million compared with $1,618.7 million in the comparable period of last year.
2021 Guidance
The company lifted its current-year earnings guidance to $4.05-$4.07 per share from the prior range of $4.02-$4.05 with expectation to reach the higher end of the latest projection when results are announced. Also, the Zacks Consensus Estimate for the same is $4.07, which meets the upper end of the utility’s current guided range.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 4.2%.
Avangrid, Inc. (AGR - Free Report) reported third-quarter 2021 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 30 cents by 13.3%.
DTE Energy Company (DTE - Free Report) reported a third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.
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WEC Energy's (WEC) Q3 Earnings Beat Mark, 2021 EPS View Up
WEC Energy Group (WEC - Free Report) delivered third-quarter 2021 earnings per share of 92 cents, which beat the Zacks Consensus Estimate of 82 cents by 12.2%. Also, the bottom line improved 9.5% from the year-ago quarter’s 84 cents per share.
Results benefited from economic recovery, operating efficiency and warmer-than-expected weather.
Revenues
Operating revenues of $1,746.5 million topped the Zacks Consensus Estimate of $1,684 million by 3.7%. Also, the top line grew 5.8% from $1,651 million 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
In the third quarter of 2021, residential use of electricity rose 0.3% year over year. Electricity consumption by small commercial and industrial customers increased 3.5% year over year. Electricity used by large commercial and industrial customers excluding iron ore mines improved 3.8% on a year-over-year basis. On a weather-normal basis, retail deliveries of electricity excluding the iron ore mine went up 2.5%.
Natural gas deliveries in Wisconsin excluding gas used for power generation moved up 1% during the reported quarter. On a weather-normal basis, natural gas deliveries rose 2.5%.
Total operating expenses for the third quarter amounted to $1,356.5 million, up 5.9% from the year-ago quarter’s $1,280.8 million.
Operating income came in at $390 million, increasing 5.3% from the prior-year period’s $370.2 million.
At the end of third-quarter 2021, the company was serving additional 8,000 electric and 15,000 natural gas customers from the year-ago quarter's levels.
Financial Position
As of Sep 30, 2021, WEC Energy had cash and cash equivalents of $26 million compared with $24.8 million as of Dec 31, 2020.
As of Sep 30, 2021, the company had long-term debt of $12,678.1 million compared with $11,728.1 million on Dec 31, 2020.
The company’s net cash provided by operating activities in the first nine months of 2021 was $2,006.7 million compared with $1,949.7 million in the comparable period of 2020.
Capital expenditure in the first three quarters was $1,627.9 million compared with $1,618.7 million in the comparable period of last year.
2021 Guidance
The company lifted its current-year earnings guidance to $4.05-$4.07 per share from the prior range of $4.02-$4.05 with expectation to reach the higher end of the latest projection when results are announced. Also, the Zacks Consensus Estimate for the same is $4.07, which meets the upper end of the utility’s current guided range.
Zacks Rank
WEC Energy has a Zacks Rank #2 (Buy), currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2021 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 4.2%.
Avangrid, Inc. (AGR - Free Report) reported third-quarter 2021 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 30 cents by 13.3%.
DTE Energy Company (DTE - Free Report) reported a third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.