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WEC Energy (WEC) to Report Q2 Earnings: What's in the Cards?

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WEC Energy Group (WEC - Free Report) is slated to report second-quarter 2017 results before the market opens on Jul 26. In the first quarter, the company reported a positive earnings surprise of 5.66%. Let’s see how things are shaping up for this earnings season.

Factors to Consider

The company expects its earnings in the second quarter to be in the range of 56–60 cents per share, assuming normal weather. Nearly 99% of its earnings come from regulated operations, giving ample visibility of its earnings.

WEC Energy is currently providing services to a higher number of customers than the last-year level, which is expected to have a positive impact on demand and earnings. The economic growth in its service territories and strategic acquisitions might help to boost the bottom line.

Earnings Whispers

Our proven model does not conclusively show that WEC Energy is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below.

Zacks ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at 59 cents.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

WEC Energy Group, Inc. Price and EPS Surprise

 

WEC Energy Group, Inc. Price and EPS Surprise | WEC Energy Group, Inc. Quote

Zacks Rank: WEC Energy’s Zacks Rank #3, when combined with its Earnings ESP of 0.00%, makes a beat unlikely this quarter.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies from the industry that you may want to consider instead, as our model shows that these have the right combination of elements to post an earnings beat this quarter.

The AES Corporation (AES - Free Report) is expected to release second-quarter 2017 results on Aug 8. The company has an Earnings ESP of +20.0% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Eversource Energy (ES - Free Report) has an Earnings ESP of +1.47% and a Zacks Rank#2. The company is expected to release second-quarter 2017 results on Jul 27.

Pattern Energy Group Inc. has an Earnings ESP of +23.08% and a Zacks Rank #2. The company is expected to release second-quarter 2017 results on Aug 4.

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