WEC Energy Group Poised for Q4 Earnings Reveal Amid Mixed Market Performance
WEC Energy Group, Inc. (WEC), based in Milwaukee, Wisconsin, is a significant player in the energy sector, offering regulated natural gas and electricity along with renewable energy services. The company boasts a market cap of $30.2 billion, sourcing electricity from various methods, including renewables. WEC not only manages natural gas distribution but also electric transmission and operates several power plants. Its extensive infrastructure includes 35,500 miles of overhead and 36,500 miles of underground distribution lines, as well as substantial gas mains and storage capabilities. With its fiscal fourth-quarter earnings for 2024 set to be announced on Thursday, Feb. 6, investor attention is on the upcoming results.
Analysts Anticipate Strong Earnings Growth
As the earnings announcement approaches, analysts predict WEC will report a profit of $1.47 per share on a diluted basis, representing a notable increase of 33.6% compared to the $1.10 per share recorded in the same quarter last year. Historically, the company has either met or exceeded Wall Street’s EPS forecasts in its last four quarterly reports.
Yearly Performance Projections
For the full fiscal year, WEC is expected to report an EPS of $4.89, marking a 5.6% improvement from $4.63 in fiscal 2023. Looking ahead, analysts estimate WEC’s EPS will rise by 7.2% year over year to reach $5.24 in fiscal 2025.
Stock Performance Versus the Market
In the past year, WEC shares have increased by 15.4%, but this is below the S&P 500’s overall gains of 24.4%. The company’s performance also lags behind the Utilities Select Sector SPDR Fund (XLU), which saw a 21.3% increase during the same period.
Challenges Faced by WEC Energy Group
WEC’s stock has struggled due to decreased demand, primarily from large commercial and industrial clients. Additional financial pressures arise from heightened interest expenses and debt, which have negatively affected investor confidence.
On Oct. 31, WEC’s stock took a slight dip after its Q3 report, which revealed revenue of $1.86 billion—falling short of Wall Street’s expectations of $1.93 billion. However, the company’s adjusted EPS of $0.82 did surpass analyst predictions of $0.70. Looking forward, WEC anticipates its full-year adjusted EPS to fall between $4.80 and $4.90.
Analysts’ Outlook on WEC Stock
Collectively, analysts maintain a cautious stance toward WEC stock, giving it an overall “Hold” rating. Among the 17 analysts tracking the stock, four recommend a “Strong Buy,” 12 suggest a “Hold,” and one advises a “Strong Sell.” The average target price from analysts is set at $99.17, signaling a potential upside of 3.8% based on current trading levels.
On the date of publication, Neha Panjwani did not hold (either directly or indirectly) any positions in the securities mentioned in this report. This article’s information is provided solely for informational purposes. For further details, please refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
