WEC Energy Group ( WEC Quick Quote 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.
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.
WEC Energy has a Zacks Rank #3 (Hold), currently. You can see
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