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Why Is WEC Energy (WEC) Up 5.5% Since Last Earnings Report?
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It has been about a month since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is WEC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
WEC Energy Beats Q1 Earnings Estimates, Ups 2022 View
WEC Energy Group delivered first-quarter 2022 earnings per share (EPS) of $1.79, which beat the Zacks Consensus Estimate of $1.66 by 7.8%. The bottom line improved by 11.2% from the year-ago earnings of $1.61 per share.
Revenues
Operating revenues of $2,908 million for the first quarter of 2022 topped the Zacks Consensus Estimate of $2,802 million by 3.8%. Also, WEC Energy’ stop line grew 8% from $2,691.4 million in the year-ago quarter.
Highlights of the Release
In the first quarter, the residential use of electricity rose 1.3% year over year. The electricity consumption by small commercial and industrial customers increased 3.8% year over year. The electricity used by large commercial and industrial customers, excluding iron ore mines, improved by 1.4% on a year-over-year basis.
Natural gas deliveries in Wisconsin, excluding the gas used for power generation, moved up 9.3% in the reporting quarter compared with the first quarter of 2021. On a weather-normal basis, natural gas deliveries rose 3.6%.
Total operating expenses for the first quarter amounted to $2,176.7 million, up 5.6% from the year-ago quarter’s $2,062.1 million due to an increase in property taxes by 10.1% and in manufacturing costs by 9.3%.
Financial Position
As of Mar 31, 2022, WEC had cash and cash equivalents of $33.8 million compared with $16.3 million as of Dec 31, 2021.
As of Mar 31, 2022, WEC Energy had long-term debt of $13,514.3 million compared with $13,523.7 million as of Dec 31, 2021.
Net cash provided by the operating activities as of Mar 31, 2022 was $1,076.8 million compared with $395.2 million in the year-ago quarter.
The capital expenditure in the first quarter was $383.5 million compared with $470.6 million in the year-ago quarter.
Guidance
WEC Energy raised the earnings guidance range for 2022 to the $4.34-$4.38 per share band compared with the previously announced earnings guidance for 2022 in the range of $4.29-$4.33 per share. The midpoint of the new range is $4.36 per share, suggesting growth of 1.2% from the midpoint of the previous guidance range. Also, the Zacks Consensus Estimate for the same is $4.3, which is lower than the midpoint of utility’s current guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, WEC Energy has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
WEC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
WEC Energy is part of the Zacks Utility - Electric Power industry. Over the past month, American Electric Power (AEP - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended March 2022 more than a month ago.
AEP reported revenues of $4.6 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $1.22 for the same period compares with $1.15 a year ago.
For the current quarter, AEP is expected to post earnings of $1.13 per share, indicating a change of -4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.4% over the last 30 days.
AEP has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
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Why Is WEC Energy (WEC) Up 5.5% Since Last Earnings Report?
It has been about a month since the last earnings report for WEC Energy Group (WEC - Free Report) . Shares have added about 5.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is WEC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
WEC Energy Beats Q1 Earnings Estimates, Ups 2022 View
WEC Energy Group delivered first-quarter 2022 earnings per share (EPS) of $1.79, which beat the Zacks Consensus Estimate of $1.66 by 7.8%. The bottom line improved by 11.2% from the year-ago earnings of $1.61 per share.
Revenues
Operating revenues of $2,908 million for the first quarter of 2022 topped the Zacks Consensus Estimate of $2,802 million by 3.8%. Also, WEC Energy’ stop line grew 8% from $2,691.4 million in the year-ago quarter.
Highlights of the Release
In the first quarter, the residential use of electricity rose 1.3% year over year. The electricity consumption by small commercial and industrial customers increased 3.8% year over year. The electricity used by large commercial and industrial customers, excluding iron ore mines, improved by 1.4% on a year-over-year basis.
Natural gas deliveries in Wisconsin, excluding the gas used for power generation, moved up 9.3% in the reporting quarter compared with the first quarter of 2021. On a weather-normal basis, natural gas deliveries rose 3.6%.
Total operating expenses for the first quarter amounted to $2,176.7 million, up 5.6% from the year-ago quarter’s $2,062.1 million due to an increase in property taxes by 10.1% and in manufacturing costs by 9.3%.
Financial Position
As of Mar 31, 2022, WEC had cash and cash equivalents of $33.8 million compared with $16.3 million as of Dec 31, 2021.
As of Mar 31, 2022, WEC Energy had long-term debt of $13,514.3 million compared with $13,523.7 million as of Dec 31, 2021.
Net cash provided by the operating activities as of Mar 31, 2022 was $1,076.8 million compared with $395.2 million in the year-ago quarter.
The capital expenditure in the first quarter was $383.5 million compared with $470.6 million in the year-ago quarter.
Guidance
WEC Energy raised the earnings guidance range for 2022 to the $4.34-$4.38 per share band compared with the previously announced earnings guidance for 2022 in the range of $4.29-$4.33 per share. The midpoint of the new range is $4.36 per share, suggesting growth of 1.2% from the midpoint of the previous guidance range. Also, the Zacks Consensus Estimate for the same is $4.3, which is lower than the midpoint of utility’s current guided range.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, WEC Energy has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
WEC Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
WEC Energy is part of the Zacks Utility - Electric Power industry. Over the past month, American Electric Power (AEP - Free Report) , a stock from the same industry, has gained 3.5%. The company reported its results for the quarter ended March 2022 more than a month ago.
AEP reported revenues of $4.6 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $1.22 for the same period compares with $1.15 a year ago.
For the current quarter, AEP is expected to post earnings of $1.13 per share, indicating a change of -4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.4% over the last 30 days.
AEP has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.