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WEC Energy's (WEC) Q4 Earnings Beat, Customer Volume Rises

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WEC Energy Group (WEC - Free Report) delivered fourth-quarter 2020 earnings per share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents by 2.7%. However, the bottom line dipped 1.3% from the year-ago quarter’s 77 cents per share.

Revenues

Operating revenues of $1,933.4 million missed the Zacks Consensus Estimate of $1,995 million by 3.1%. Also, the top line slipped 0.7% from $1,947.5 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

In 2020, residential use of electricity rose 5.5% year over year. Electricity consumption by small commercial and industrial customers declined 4.8% year over year. Electricity used by large commercial and industrial customers excluding iron ore mines fell 6.5% on a year-over-year basis. On a weather adjusted basis, retail deliveries of electricity excluding the iron ore mine slid 2.9%.

Natural gas deliveries in Wisconsin excluding gas used for power generation moved down 7.9% during 2020. On a weather-normal basis, natural gas deliveries decreased 2.4%.

Total operating expenses for the fourth quarter amounted to $1,562.9 million, down 1.4% from the year-ago quarter’s $1,584.4 million.

Operating income came in at $370.5 million, increasing 2% from the prior-year period’s $363.1 million.

At the end of 2020, the company was serving additional 11,000 electric and 27,000 natural gas customers from the year-ago quarter's levels.

Financial Position

As of Dec 31, 2020, WEC Energy had cash and cash equivalents of $24.8 million compared with $37.5 million as of Dec 31, 2019.

As of Dec 31, 2020, the company had long-term debt of $11,728.1 million compared with $11,211 million on Dec 31, 2019.

The company’s net cash provided by operating activities in 2020 was $2,196 million compared with $2,345.5 million in 2019.

Capital expenditure in 2020 was $2,238.8 million compared with $2,260.8 million in 2019.

2021 Guidance

The company reaffirmed its current-year earnings per share projection in the range of $3.99-$4.03. Also, the Zacks Consensus Estimate for the same is $4.01, which is near the upper end of the utility’s current guided range.

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.

Utility Release

NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.

Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, inline with the Zacks Consensus Estimate.

Upcoming Release

Duke Energy (DUK - Free Report) is scheduled to report fourth-quarter 2020 results on Feb 11. The Zacks Consensus Estimate for earnings is pegged at $1.02 per share.

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