WEC Energy (WEC) Q1 Earnings Surpass Estimates, Sales Lag

WEC Energy Group WEC reported first-quarter 2023 earnings of $1.61 per share, which beat the Zacks Consensus Estimate of $1.59 by 1.26%. However, the bottom line declined 10.1% from the year-ago quarter’s figure of $1.79.

Revenues

Operating revenues of $2,888.1 million missed the Zacks Consensus Estimate of $2,916 million by around 0.97%. The top line also declined 0.69% from $2,908.1 million in the year-ago quarter.

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

Electricity consumption by small commercial and industrial customers declined 3.4% year over year. The same for large commercial and industrial customers, excluding the iron ore mine, decreased 3.9% on a year-over-year basis.

On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, declined 1.9%.

Total operating expenses amounted to $2,218.8 million, up 16.2% from the year-ago quarter’s $2,176.7 million. This was due to higher operation and maintenance expenses, depreciation & amortization costs, and property and revenue taxes.

Operating income was $669.3 million, down 8.5% from the year-ago quarter’s $731.4 million.

The company incurred an interest expense of $172.2 million, up 46.4% from the prior-year quarter’s $117.6 million.

Financial Position

As of Mar 31, 2023, WEC had cash and cash equivalents of $35.7 million compared with $28.9 million as of Dec 31, 2022.

As of Mar 31, 2023, the company had a long-term debt of $15,827.3 million compared with $14,766.2 million as of Dec 31, 2022.

Net cash provided by operating activities during first three months of 2023 was $796.1 million compared with $1,076.8 million in the year-ago period.

Guidance

WEC Energy Group reaffirmed 2023 earnings guidance in the range of $4.58-$4.62 per share. The midpoint of the range, $4.60 per share, is on par with the Zacks Consensus Estimate.

Zacks Rank

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

Upcoming Releases

Exelon Corporation EXC is slated to report first-quarter results on May 3, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at 66 cents per share, implying a year-over-year increase of 3.13%.

EXC’s long-term (three to five years) earnings growth rate is currently pinned at 6.68%. The consensus estimate for 2023 earnings per share (EPS) stands at $2.35, indicating a year-over-year improvement of 3.52%.

Alliant Energy Corporation LNT is slated to report first-quarter results on May 4, after market close. The Zacks Consensus Estimate for first-quarter earnings is pegged at 73 cents per share.

LNT’s long-term earnings growth is currently pinned at 6.47%. The consensus estimate for 2023 EPS stands at $2.9, indicating a year-over-year improvement of 3.6%.

Duke Energy DUK is scheduled to report first-quarter results on May 9, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.31 per share, indicating a year-over-year increase of 0.77%.

DUK’s long-term earnings growth rate is currently pinned at 6.18%. The consensus mark for 2023 EPS stands at $5.61, implying a year-over-year improvement of 6.45%.

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WEC Energy (WEC) Q1 Earnings Surpass Estimates, Sales Lag

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