WEC Energy Group (WEC) reported better-than-expected earnings for the third quarter of 2023, with earnings per share (EPS) of $1. This figure not only beat the Zacks Consensus Estimate of 91 cents by 9.9%, but it also represents a 4.2% improvement from the year-ago quarter’s EPS of 96 cents.
Revenues
WEC Energy Group’s operating revenues for the quarter came in at $1,957.4 million. While this fell short of the Zacks Consensus Estimate of $2,124 million by around 7.8%, it also reflects a 2.3% decline from the year-ago quarter’s revenues of $2,003 million.
Highlights of the Release
In terms of electricity consumption, small commercial and industrial customers saw flat year-over-year growth, while large commercial and industrial customers (excluding the iron ore mine) experienced a 4.1% decrease. On a weather-normal basis, retail deliveries of electricity (excluding the iron ore mine) declined 0.8% during the same period.
WEC Energy Group’s total electric retail sales volume for the quarter reached 9,909.1 thousand megawatt-hours (MWh), a 0.9% YoY decrease. However, the company’s total electric sales volume for the quarter increased by 7% YoY, totaling 12,647.3 thousand MWh.
The company’s total operating expenses decreased by 7.1% from the year-ago quarter’s level, mainly driven by lower cost of sales. Operating income for the quarter totaled $472 million, marking a 16.8% increase compared to the same quarter last year. However, the company’s interest expense rose by 43.1% YoY to $182.5 million.
Financial Position
As of September 30, 2023, WEC Energy Group had cash and cash equivalents of $45.9 million, compared with $28.9 million at the end of December 31, 2022. The company’s long-term debt stood at $15,956.5 million as of September 30, 2023, an increase from $14,766.2 million at the end of December 31, 2022.
For the first nine months of 2023, WEC Energy Group generated a net cash flow of $2,538.4 million from operating activities, compared to $2,059.5 million in the same period last year.
Guidance
WEC Energy Group reaffirmed its earnings projection for 2023, expecting a range of $4.58 to $4.62 per share. The Zacks Consensus Estimate of $4.60 per share aligns with the midpoint of the guidance range.
Upcoming Releases
NRG Energy, Inc. (NRG) is scheduled to report its third-quarter results on November 2, before the market opens. The Zacks Consensus Estimate for NRG’s earnings is $1.53 per share.
Exelon Corporation (EXC) will also report its third-quarter results on November 2, before the market opens. The Zacks Consensus Estimate for Exelon’s earnings is 68 cents per share.
Alliant Energy (LNT) is scheduled to report its third-quarter results on November 2, after the market closes. The Zacks Consensus Estimate for Alliant Energy’s earnings is 92 cents per share.
7 Best Stocks for the Next 30 Days
Experts have selected 7 elite stocks as the “Most Likely for Early Price Pops” from the current list of 220 Zacks Rank #1 Strong Buys. Since 1988, the full list has outperformed the market with an average annual gain of +24.3%. To access these hand-picked stocks, click here.
For the latest recommendations from Zacks Investment Research, download the free report, “7 Best Stocks for the Next 30 Days” (click here).
Exelon Corporation (EXC) : Free Stock Analysis Report
NRG Energy, Inc. (NRG) : Free Stock Analysis Report
WEC Energy Group, Inc. (WEC) : Free Stock Analysis Report
Alliant Energy Corporation (LNT) : Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
