WEC Energy Group Faces Mixed Outlook as Q3 Earnings Approach
WEC Energy Group, Inc. (WEC), located in Milwaukee, Wisconsin, is a key player in the regulated natural gas and electricity sectors, as well as renewable energy. With a market capitalization of $30.7 billion, the company operates through various segments, including Wisconsin, Illinois, Other States, Electric Transmission, and Non-Utility Energy Infrastructure. Investors are keenly awaiting the release of WEC’s third-quarter earnings, scheduled for Thursday, Oct. 31, before market open.
Analysts Project Lower Q3 Profits
Experts predict that WEC will report earnings of $0.84 per share for Q3, reflecting a 16% decrease from $1 per share in the same quarter last year. Historically, WEC has either met or exceeded Wall Street’s expectations for earnings per share (EPS) over the past four quarters. However, in the last reported quarter, the adjusted EPS dropped by 27.2% year-over-year to $0.67, although this still outperformed analysts’ consensus estimates by 4.7%.
Future Earnings Expectations
Looking ahead, analysts project that WEC will achieve an adjusted EPS of $4.87 for fiscal 2024, which marks a 5.2% increase from $4.63 in fiscal 2023. For fiscal 2025, they anticipate a further growth of 7.2% year-over-year, bringing the adjusted EPS to $5.22.
Performance Compared to Industry Standards
On a year-to-date basis, WEC has seen a 15.5% increase in its stock price. However, this still lags behind the S&P 500 Index’s gains of 21.9% and the Utilities Select Sector SPDR Fund’s (XLU) impressive 27.3% returns during the same period.
Q2 Earnings Report Shows Mixed Results
Despite experiencing declines in revenue and earnings, WEC’s stock saw a slight uptick following the Q2 earnings report released on July 31. The company reported an operating revenue of $1.8 billion, reflecting a 3.2% decrease compared to the previous year. Additionally, steady operating expenses along with rising costs led to a net margin contraction between 3.9% and 11.9%, and net income dropped by 27.1% to $211.3 million. Nevertheless, WEC managed to beat Wall Street’s earnings estimates, contributing to a positive reaction in its stock price.
Analyst Sentiment and Current Stock Rating
The consensus viewpoint among analysts regarding WEC stock is cautious, currently holding a “Hold” rating overall. Out of 17 analysts studying the stock, four recommend a “Strong Buy,” ten advise a “Hold,” one suggests a “Moderate Sell,” and two opt for a “Strong Sell.” Notably, as of the latest update, WEC trades above its average price target of $94.23.
More Stock Market News from Barchart
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
