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WEC Energy (WEC) Up 2.2% Since Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for WEC Energy Group, Inc. (WEC - Free Report) . Shares have added about 2.2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted 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 Q3 Earnings Beat Estimates, Revenue Miss
WEC Energy reported third-quarter 2017 adjusted earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents by 1.5%. However, earnings missed the year-ago figure of 69 cents by the same percentage.
Revenues
WEC Energy’s total revenues amounted to $1,657.5 million, missing the Zacks Consensus Estimate of $1,708 million by 2.9%. Reported revenues also missed the year-ago figure of $1,712.5 million by 3.2%.
Highlights of the Release
Residential consumption of electricity for the first nine months of 2017 was down 4.6% year over year. Electricity utilized by small commercial and industrial customers also dropped 2.3% year over year. Electricity used by large commercial and industrial customers, excluding the iron ore mines in Michigan's Upper Peninsula, declined 2.5%.
Total operating expenses in the quarter under review was $1,263.9 million compared with $1,313.5 million.
Operating income in the reported quarter was $393.6 million, down 1.4% from $399 million a year ago.
The company’s interest expenses in the third quarter increased 4.7% year over year to $103.8 million.
WEC Energy's utilities expanded the customer base in the reported quarter. At the end of third-quarter 2017, the company had an additional 9,000 electric and 18,000 natural gas customers compared with the year-ago quarter.
Financial Position
As of Sep 30, 2017, WEC Energy had cash and cash equivalents of $18.1 million compared with $37.5 million as of Dec 31, 2016.
As of Sep 30, 2017, the company’s long-term debts of $8.8 billion decreased almost 4.1% from the 2016-end level.
In the first nine months of 2017, cash flow from operating activities was $1,746.7 million, marginally higher than $1,721.9 million in the year-ago period.
WEC Energy’s capital expenditure during the first nine months of 2017 was $1,309.2 million, 30.9% higher than the comparable year-ago period.
Guidance
The company reaffirmed 2017 earnings guidance in the range of $3.06-$3.12, with the expectation of concluding the year in the upper end of the range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
VGM Scores
Currently, WEC Energy's stock has an subpar Growth Score of D. It is lagging on the momentum front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We expect above average returns from the stock in the next few months.
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WEC Energy (WEC) Up 2.2% Since Earnings Report: Can It Continue?
It has been about a month since the last earnings report for WEC Energy Group, Inc. (WEC - Free Report) . Shares have added about 2.2% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it due for a pullback? Before we dive into how investors and analysts have reacted 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 Q3 Earnings Beat Estimates, Revenue Miss
WEC Energy reported third-quarter 2017 adjusted earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents by 1.5%. However, earnings missed the year-ago figure of 69 cents by the same percentage.
Revenues
WEC Energy’s total revenues amounted to $1,657.5 million, missing the Zacks Consensus Estimate of $1,708 million by 2.9%. Reported revenues also missed the year-ago figure of $1,712.5 million by 3.2%.
Highlights of the Release
Residential consumption of electricity for the first nine months of 2017 was down 4.6% year over year. Electricity utilized by small commercial and industrial customers also dropped 2.3% year over year. Electricity used by large commercial and industrial customers, excluding the iron ore mines in Michigan's Upper Peninsula, declined 2.5%.
Total operating expenses in the quarter under review was $1,263.9 million compared with $1,313.5 million.
Operating income in the reported quarter was $393.6 million, down 1.4% from $399 million a year ago.
The company’s interest expenses in the third quarter increased 4.7% year over year to $103.8 million.
WEC Energy's utilities expanded the customer base in the reported quarter. At the end of third-quarter 2017, the company had an additional 9,000 electric and 18,000 natural gas customers compared with the year-ago quarter.
Financial Position
As of Sep 30, 2017, WEC Energy had cash and cash equivalents of $18.1 million compared with $37.5 million as of Dec 31, 2016.
As of Sep 30, 2017, the company’s long-term debts of $8.8 billion decreased almost 4.1% from the 2016-end level.
In the first nine months of 2017, cash flow from operating activities was $1,746.7 million, marginally higher than $1,721.9 million in the year-ago period.
WEC Energy’s capital expenditure during the first nine months of 2017 was $1,309.2 million, 30.9% higher than the comparable year-ago period.
Guidance
The company reaffirmed 2017 earnings guidance in the range of $3.06-$3.12, with the expectation of concluding the year in the upper end of the range.
How Have Estimates Been Moving Since Then?
Analysts were quiet during the last month as none of them issued any earnings estimate revisions.
VGM Scores
Currently, WEC Energy's stock has an subpar Growth Score of D. It is lagging on the momentum front with an F. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Zacks' style scores indicate that the company's stock is suitable for value investors.
Outlook
The stock has a Zacks Rank #2 (Buy). We expect above average returns from the stock in the next few months.