WEC Energy Group (WEC - Free Report) delivered third-quarter 2022 earnings per share (EPS) of 96 cents, beating the Zacks Consensus Estimate of 86 cents by 11.6%. The bottom line improved 4.4% from the year-ago quarter’s earnings of 92 cents per share. Third-quarter earnings were ahead of our estimate of 84 cents per share.
The year-over-year improvement in earnings was driven by positive results from WEC’s infrastructure and transmission segments and warmer-than-normal summer temperature-generating demand.
Revenues
Operating revenues of $2,003 million for the third quarter of 2022 topped the Zacks Consensus Estimate of $1,834 million by 9.2%. Also, WEC Energy’s top line grew 14.7% from $1,746.5 million in the year-ago quarter. Third-quarter revenues were ahead of our estimate of $1,817.2 million.
Highlights of the Release
In the third quarter, the residential use of electricity dipped 4.4% year over year. The electricity consumption by small commercial and industrial customers decreased 1.3% year over year. The electricity used by large commercial and industrial customers, excluding iron ore mines, increased 16% on a year-over-year basis.
On a weather-normal basis, the retail deliveries of electricity in the third quarter, excluding the iron ore mine, inched up 0.3%.
Total operating expenses for the third quarter amounted to $1,598.8 million, up 17.9% from the year-ago quarter’s $1,356.5 million due to higher property taxes as well as the cost of sales.
Financial Position
As of Sep 30, 2022, WEC had cash and cash equivalents of $28.5 million compared with $16.3 million as of Dec 31, 2021.
As of Sep 30, 2022, WEC Energy had a long-term debt of $14,910.7 million compared with $13,523.7 million as of Dec 31, 2021.
Net cash provided by operating activities for the first nine months of 2022 was $2,059.5 million compared with $2,006.7 million in the year-ago period.
The capital expenditure in the first nine months of 2022 was $1,700.7 million compared with $1,627.9 million in the year-ago period.
Guidance
WEC Energy narrowed its earnings per share guidance for 2022 to the $4.38-$4.40 range from the $4.36-$4.40 band. The midpoint of the new range is $4.39 per share, lower than the Zacks Consensus Estimate of $4.40.
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.
Other Releases
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating earnings per share (EPS) of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%.
The Zacks Consensus Estimate for FE’s fourth-quarter earnings per share is 53 cents, indicating growth of 3.92% from the year-ago quarter’s reported figure.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 79 cents by 7.6%.
The Zacks Consensus Estimate for NEE’s fourth-quarter earnings per share is 56 cents, implying growth of 36.6% from the year-ago quarter’s reported number.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2022 operating earnings of $1.18 per share, lagging the Zacks Consensus Estimate by 1.7%.
The Zacks Consensus Estimate for XEL’s fourth-quarter earnings per share is 67 cents, suggesting growth of 15.5% from the year-ago quarter’s actuals.
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WEC Energy Group (WEC - Free Report) delivered third-quarter 2022 earnings per share (EPS) of 96 cents, beating the Zacks Consensus Estimate of 86 cents by 11.6%. The bottom line improved 4.4% from the year-ago quarter’s earnings of 92 cents per share. Third-quarter earnings were ahead of our estimate of 84 cents per share.
The year-over-year improvement in earnings was driven by positive results from WEC’s infrastructure and transmission segments and warmer-than-normal summer temperature-generating demand.
Revenues
Operating revenues of $2,003 million for the third quarter of 2022 topped the Zacks Consensus Estimate of $1,834 million by 9.2%. Also, WEC Energy’s top line grew 14.7% from $1,746.5 million in the year-ago quarter. Third-quarter revenues were ahead of our estimate of $1,817.2 million.
Highlights of the Release
In the third quarter, the residential use of electricity dipped 4.4% year over year. The electricity consumption by small commercial and industrial customers decreased 1.3% year over year. The electricity used by large commercial and industrial customers, excluding iron ore mines, increased 16% on a year-over-year basis.
On a weather-normal basis, the retail deliveries of electricity in the third quarter, excluding the iron ore mine, inched up 0.3%.
Total operating expenses for the third quarter amounted to $1,598.8 million, up 17.9% from the year-ago quarter’s $1,356.5 million due to higher property taxes as well as the cost of sales.
Financial Position
As of Sep 30, 2022, WEC had cash and cash equivalents of $28.5 million compared with $16.3 million as of Dec 31, 2021.
As of Sep 30, 2022, WEC Energy had a long-term debt of $14,910.7 million compared with $13,523.7 million as of Dec 31, 2021.
Net cash provided by operating activities for the first nine months of 2022 was $2,059.5 million compared with $2,006.7 million in the year-ago period.
The capital expenditure in the first nine months of 2022 was $1,700.7 million compared with $1,627.9 million in the year-ago period.
Guidance
WEC Energy narrowed its earnings per share guidance for 2022 to the $4.38-$4.40 range from the $4.36-$4.40 band. The midpoint of the new range is $4.39 per share, lower than the Zacks Consensus Estimate of $4.40.
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.
Other Releases
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2022 operating earnings per share (EPS) of 79 cents, beating the Zacks Consensus Estimate of 77 cents by 2.6%.
The Zacks Consensus Estimate for FE’s fourth-quarter earnings per share is 53 cents, indicating growth of 3.92% from the year-ago quarter’s reported figure.
NextEra Energy, Inc. (NEE - Free Report) reported third-quarter 2022 adjusted earnings of 85 cents per share, beating the Zacks Consensus Estimate of 79 cents by 7.6%.
The Zacks Consensus Estimate for NEE’s fourth-quarter earnings per share is 56 cents, implying growth of 36.6% from the year-ago quarter’s reported number.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2022 operating earnings of $1.18 per share, lagging the Zacks Consensus Estimate by 1.7%.
The Zacks Consensus Estimate for XEL’s fourth-quarter earnings per share is 67 cents, suggesting growth of 15.5% from the year-ago quarter’s actuals.
Free Report: Must-See Energy Stocks for 2023
Record profits at oil companies can mean big gains for you. With soaring demand and elevated prices, oil stocks could be top performers by far in 2023. Zacks has released a special report revealing the 4 oil stocks experts believe will deliver the biggest gains. (You’ll never guess Stock #2!)
Download Oil Market on Fire today, absolutely free.
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