Back to top

WEC Energy's (WEC) Earnings & Revenues Beat Estimates in Q2

Read MoreHide Full Article

WEC Energy Group (WEC - Free Report) reported second-quarter 2018 adjusted earnings of 73 cents, beating the Zacks Consensus Estimate of 66 cents by 10.6%. Earnings also improved from the year-ago 63 cents by 15.8%. Earnings benefited from effective cost control, stronger natural gas sales and favorable economic conditions, which drove demand for energy from industrial customers.

Revenues

WEC Energy’s total revenues amounted to $1,672.5 million, beating the Zacks Consensus Estimate of $1,610 million by 4%. Reported revenues were up 2.5% from $1,631.5 million in the year-ago quarter.

Highlights of the Release

Residential consumption of electricity in the reported quarter was up 4.5% year over year. Electricity utilized by small commercial and industrial customers also rose 3.4% year over year. Electricity used by large commercial and industrial customers, excluding iron ore mines, improved 1.1%.

WEC Energy's utilities contributed to the customer base in the reported quarter. At the end of June 2018, the company had an additional 10,000 electric and 15,000 natural gas customers compared with the year-ago level.

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

 

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

Financial Position

As of Jun 30, 2018, WEC Energy had cash and cash equivalents of $29.8 million compared with $38.9 million as of Dec 31, 2017.
 
As of Jun 30, 2018, the company’s long-term debt of $9.2 billion showed a rise of almost 5.3% from the 2017-end level.

The company’s net cash provided by operating activities at the end of first-half 2018 was $1.5 billion compared with $1.3 billion at the end of first-half 2017.

WEC Energy’s capital expenditure at the end of first-half 2018 was $915.5 million, higher than $790 million at the end of first-half 2017.

Guidance

The company raised the 2018 earnings per share guidance to $3.32 from the previous $3.26-$3.30. The new earnings guidance assumes normal weather for the remainder of the year.

Zacks Rank

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

Utility Releases

DTE Energy (DTE - Free Report) reported second-quarter 2018 operating earnings per share of $1.36, which outpaced the Zacks Consensus Estimate of $1.11 by 22.5%.

American Electric Power (AEP - Free Report) reported second-quarter 2018 adjusted earnings per share of $1.01, trumping the consensus estimate of 88 cents by 14.8%.

NextEra Energy (NEE - Free Report) reported second-quarter 2018 adjusted earnings of $2.11, steering past the consensus mark of $2.07 by 1.93%

Looking for Stocks with Skyrocketing Upside?

Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.

Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.

See the pot trades we're targeting>>



More from Zacks Analyst Blog

You May Like

Published in