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WEC Energy (WEC) Beats Earnings & Revenue Estimates in 2Q

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WEC Energy Group (WEC - Free Report) reported second-quarter 2017 adjusted earnings of 63 cents per share, beating the Zacks Consensus Estimate of 59 cents by 6.8% and the year-ago figure of 57 cents by 10.5%.

Revenues

WEC Energy’s total revenue amounted to $1,631.5 million, beating the Zacks Consensus Estimate of $1,592 million by 2.5%. Reported revenues also surpassed the year-ago figure of $1,602 million by 1.8%.

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

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

 

Highlights of the Release

Residential consumption of electricity in the first half of 2017 was down 1.1% year over year. Electricity utilized by small commercial and industrial customers also dropped 1% year over year. Electricity used by large commercial and industrial customers, excluding the iron ore mines in Michigan's Upper Peninsula, declined 0.5%.

Total operating expenses in the quarter under review was $1,269.3 million compared with $1,269.9 million.

Operating income in the reported quarter was $ 362.2 million, up 9.1% from $332.1 million a year ago.

The company’s interest expenses in the second quarter increased 1.8% year over year to $101.9 million.

WEC Energy's utilities expanded the customer base in the reported quarter. At the end of second-quarter 2017, the company had an additional 9,000 electric and 13,000 natural gas customers compared with the year-ago quarter.

Financial Position

As of Jun 30, 2017, WEC Energy had cash and cash equivalents of $36.5 million compared with $37.5 million as of Dec 31, 2016.

As of Jun 30, 2017, WEC Energy’s long-term debts of $8.8 billion,  decreased almost 3.9% from the 2016-end level.

In the first half of 2016, cash flow from operating activities was $1,268.0 million, marginally higher than $1,224.1 million in the year-ago period.

WEC Energy’s capital expenditure in the first half of 2016 was $790.0 million, 26.1% higher than the comparable year-ago period.

Guidance

The company reaffirmed its 2017 earnings guidance in the range of $3.06 to $3.12, with the expectation of closing the year in the upper end of the range.

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

Here are a few companies in the utility sector that have the right combination of elements to post an earnings beat this quarter.

Allete, Inc. (ALE - Free Report) has an Earnings ESP of +5.36% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 2.

Pattern Energy Group Inc. has an Earnings ESP of +23.08% and carries a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 4.

The AES Corporation (AES - Free Report) has an Earnings ESP of +20.00% and holds a Zacks Rank #2. It is slated to report second-quarter 2017 results on Aug 8.

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