WEC Energy Group (WEC - Free Report) reported second-quarter 2023 earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 85 cents by 8.24%. The bottom line also increased 1.1% from the year-ago quarter’s figure of 91 cents.
Revenues
Operating revenues of $1,830 million missed the Zacks Consensus Estimate of $2,166 million by around 15.5%. The top line also declined 14% from $2,127.9 million recorded in the year-ago quarter.
Highlights of the Release
Electricity consumption by small commercial and industrial customers increased 0.1% year over year. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 3.2% on a year-over-year basis.
On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 0.6%.
Total electric retail sales volume for the quarter was 8,620.8 thousand megawatt-hour (MWh), down 1.8% year over year. The Zacks Consensus Estimate for the same was pegged at 8,931 thousand MWh.
Total electric sales volume for the quarter was 10,029.6 thousand MWh, down 2.4% year over year. Our model projected total electric sales volume of 10,847.7 thousand MWh for the quarter.
Total operating expenses were $1,404.7 million, down 18.3% from the year-ago quarter’s level of $1,719.7 million. This was due to lower cost of sales.
Operating income totaled $425.3 million, up 4.2% from the year-ago quarter’s recorded number of $408.2 million.
The company incurred an interest expense of $178.7 million, up 49.2% from the prior-year quarter’s level of $119.8 million. Our model projected interest expense of $170.8 million for the reported quarter.
Financial Position
As of Jun 30, 2023, WEC had cash and cash equivalents of $54.7 million compared with $28.9 million as of Dec 31, 2022.
As of Jun 30, 2023, the company had long-term debt of $15,608.3 million compared with $14,766.2 million as of Dec 31, 2022.
Net cash provided by operating activities during the first six months of 2023 was $1,754.3 million compared with $1,762.6 million in the year-ago period.
Guidance
WEC reaffirmed its 2023 earnings guidance in the range of $4.58-$4.62 per share. The midpoint of the range, $4.60 per share, is on par with the Zacks Consensus Estimate.
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
Dominion Energy (D - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share.
D’s long-term (three to five years) earnings growth rate is 20%. It delivered an average earnings surprise of 1.7% in the last four quarters.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
WEC Energy Group (WEC - Free Report) reported second-quarter 2023 earnings of 92 cents per share, which beat the Zacks Consensus Estimate of 85 cents by 8.24%. The bottom line also increased 1.1% from the year-ago quarter’s figure of 91 cents.
Revenues
Operating revenues of $1,830 million missed the Zacks Consensus Estimate of $2,166 million by around 15.5%. The top line also declined 14% from $2,127.9 million recorded in the year-ago quarter.
Highlights of the Release
Electricity consumption by small commercial and industrial customers increased 0.1% year over year. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 3.2% on a year-over-year basis.
On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 0.6%.
Total electric retail sales volume for the quarter was 8,620.8 thousand megawatt-hour (MWh), down 1.8% year over year. The Zacks Consensus Estimate for the same was pegged at 8,931 thousand MWh.
Total electric sales volume for the quarter was 10,029.6 thousand MWh, down 2.4% year over year. Our model projected total electric sales volume of 10,847.7 thousand MWh for the quarter.
Total operating expenses were $1,404.7 million, down 18.3% from the year-ago quarter’s level of $1,719.7 million. This was due to lower cost of sales.
Operating income totaled $425.3 million, up 4.2% from the year-ago quarter’s recorded number of $408.2 million.
The company incurred an interest expense of $178.7 million, up 49.2% from the prior-year quarter’s level of $119.8 million. Our model projected interest expense of $170.8 million for the reported quarter.
Financial Position
As of Jun 30, 2023, WEC had cash and cash equivalents of $54.7 million compared with $28.9 million as of Dec 31, 2022.
As of Jun 30, 2023, the company had long-term debt of $15,608.3 million compared with $14,766.2 million as of Dec 31, 2022.
Net cash provided by operating activities during the first six months of 2023 was $1,754.3 million compared with $1,762.6 million in the year-ago period.
Guidance
WEC reaffirmed its 2023 earnings guidance in the range of $4.58-$4.62 per share. The midpoint of the range, $4.60 per share, is on par with the Zacks Consensus Estimate.
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
Dominion Energy (D - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 48 cents per share.
D’s long-term (three to five years) earnings growth rate is 20%. It delivered an average earnings surprise of 1.7% in the last four quarters.
PPL Corporation (PPL - Free Report) is slated to report second-quarter results on Aug 4, before market open. The Zacks Consensus Estimate for earnings is pegged at 32 cents per share, indicating a year-over-year increase of 6.7%.
PPL’s long-term earnings growth rate is 7.42%. It delivered an average earnings surprise of 3.14% in the last four quarters.
Duke Energy (DUK - Free Report) is scheduled to report second-quarter results on Aug 8, before market open. The Zacks Consensus Estimate for earnings is pinned at 98 cents per share.
DUK’s long-term earnings growth rate is 6.12%. The consensus mark for 2023 EPS is pinned at $5.61, implying a year-over-year improvement of 6.5%.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Get the latest research report on PPL - FREE
Get the latest research report on DUK - FREE
Get the latest research report on WEC - FREE
Get the latest research report on D - FREE