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WEC Energy's (WEC) Q3 Earnings Surpass, 2020 EPS View Up

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WEC Energy Group (WEC - Free Report) delivered third-quarter 2020 earnings per share of 84 cents, which beat the Zacks Consensus Estimate of 76 cents by 10.5%. The bottom line also improved 13.5% from the year-ago quarter’s 74 cents per share. This year-over-year outperformance was led by operational efficiency, the warmer-than-normal weather along with reopening of economic activities.

Revenues

Total revenues of $1,651 million missed the Zacks Consensus Estimate of $1,681 million by 1.8%. However, the top line improved 2.7% from $1,608 million in the year-ago quarter.

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

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

WEC Energy Group, Inc. price-consensus-eps-surprise-chart | WEC Energy Group, Inc. Quote

Highlights of the Release

Residential use of electricity in the third quarter rose 7.1% year over year. Electricity consumption by small commercial and industrial customers declined 2.5% year over year. Electricity used by large commercial and industrial customers excluding iron ore mines dipped 5.4% on a year-over-year basis. On a weather adjusted basis, retail deliveries of electricity excluding the iron ore mine slid 1.5%.

Total natural gas volume declined 6.4% in the third quarter.

Total operating expenses for the third quarter amounted to $1,280.8 million, down 1.3% from the year ago quarter’s $1,297.1 million.

Operating income came in at $370.2 million, increasing 19.1% from the prior-year period’s $310.9 million.

At the end of the third quarter of 2020, the company was serving additional 11,000 electric and 32,000 natural gas customers from the year-ago quarter's levels.

Financial Position

As of Sep 30, 2020, WEC Energy had cash and cash equivalents of $13.1 million compared with $37.5 million as of Dec 31, 2019.

As of Sep 30, 2020, the company had long-term debt of $11,652.5 million compared with $11,211 million on Dec 31, 2019.

The company’s net cash provided by operating activities at the end of the first nine months of 2020 was $1,949.7 million compared with $1,840.7 million at the end of the comparable period of 2019.

Capital expenditure at the end of the first nine months of this year was $1,618.7 million compared with $1,511.5 million at the end of the year-ago period.

2020 Guidance

The company narrowed full-year earnings per share projection to the range of $3.74-$3.76 from the prior expectation of $3.71-$3.75. The upper end of this current guided range is in line with the Zacks Consensus Estimate.

Zacks Rank

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

Other Utility Releases

Pinnacle West Capital Corporation’s (PNW - Free Report) adjusted earnings per share of $3.07 in the third quarter of 2020 beat the Zacks Consensus Estimate of $2.98 by 3%.

Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.

NiSource Inc (NI - Free Report) delivered net operating earnings of 9 cents per share in third-quarter 2020, which surpassed the Zacks Consensus Estimate of 2 cents by 85.7%.

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