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.
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.
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.
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.
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.
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