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WEC Energy (WEC) Q3 Earnings Beat Estimates, Revenue Miss

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WEC Energy Group (WEC - Free Report) reported third-quarter 2017 adjusted earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents by 1.5%. However, earnings missed the year-ago figure of 69 cents by the same percentage.

Revenues

WEC Energy’s total revenues amounted to $1,657.5 million, missing the Zacks Consensus Estimate of $1,708 million by 2.9%. Reported revenues also missed the year-ago figure of $1,712.5 million by 3.2%.

Highlights of the Release

Residential consumption of electricity for the first nine months of 2017 was down 4.6% year over year. Electricity utilized by small commercial and industrial customers also dropped 2.3% year over year. Electricity used by large commercial and industrial customers, excluding the iron ore mines in Michigan's Upper Peninsula, declined 2.5%.

Total operating expenses in the quarter under review was $1,263.9 million compared with $1,313.5 million.

Operating income in the reported quarter was $393.6 million, down 1.4% from $399 million a year ago.

The company’s interest expenses in the third quarter increased 4.7% year over year to $103.8 million.

WEC Energy's utilities expanded the customer base in the reported quarter. At the end of third-quarter 2017, the company had an additional 9,000 electric and 18,000 natural gas customers compared with the year-ago quarter.

Financial Position

As of Sep 30, 2017, WEC Energy had cash and cash equivalents of $18.1 million compared with $37.5 million as of Dec 31, 2016.

As of Sep 30, 2017, the company’s long-term debts of $8.8 billion decreased almost 4.1% from the 2016-end level.

In the first nine months of 2017, cash flow from operating activities was $1,746.7 million, marginally higher than $1,721.9 million in the year-ago period.

WEC Energy’s capital expenditure during the first nine months of 2017 was $1,309.2 million, 30.9% higher than the comparable year-ago period.

Guidance

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

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

Zacks Rank

WEC Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

Here are a few companies from the same industry that have reported their quarterly results.

NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2017 adjusted earnings of $1.85 per share, beating the Zacks Consensus Estimate of $1.75 by 5.7%.

Xcel Energy Inc. (XEL - Free Report) reported third-quarter 2017 adjusted earnings of 97 cents per share, beating the Zacks Consensus Estimate of 92 cents by 5.4%.

DTE Energy Company (DTE - Free Report) reported third-quarter 2017 adjusted earnings of $1.48, missing the Zacks Consensus Estimate of $1.53 by 3.3%.

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