WEC Energy (WEC) Earnings & Revenues Beat Estimates In Q1

WEC Energy Group (NYSE:WEC) delivered first-quarter 2019 adjusted earnings of $1.33 per share, which beat the Zacks Consensus Estimate of $1.25 by 6.4%. The bottom line was up 8.1% from the year-ago quarter’s tally of $1.23. The upside can be attributed to colder than usual weather and focus on operating efficiency across the system.

Revenues

Total revenues amounted to $2,377.4 million, beating the Zacks Consensus Estimate of $2,294 million by 3.63%. The figure was also higher than $2,286.5 million reported in the year-ago quarter.

Highlights of the Release

Residential use of electricity rose 3.4% year over year. Electricity consumption by small commercial and industrial customers declined 0.4%. Electricity utilized by large commercial and industrial customers, excluding iron ore mines, declined 1.1%.

WEC Energy witnessed increase in customer base in the reported quarter. At the end of March 2019, the company had an additional 11,000 electric and 22,000 natural gas customers compared with the year-ago quarter’s level.

Natural gas deliveries in Wisconsin, excluding gas utilized for power generation, were up 7% year over year. On a weather normal basis, natural gas deliveries rose 2.6%.

Retail deliveries of electricity, excluding iron ore mine in Michigan's Upper Peninsula, increased 0.5% in the first quarter compared with the year-ago quarter.

Financial Position

As of Mar 31, 2019, WEC Energy had cash and cash equivalents of $30.6 million compared with $84.5 million as of Dec 31, 2018.

As of Mar 31, 2019, the company had long-term debt of $10.3 billion, up from $10 billion at 2018-end.

Net cash generated by the company’s operating activities in the first quarter was $735.7 million compared with $894 million in the year-ago period.

Capital expenditure in the first quarter was $358.8 million, down from $439.6 million in the year-ago period.

Guidance

The company reaffirmed 2019 earnings per share guidance in the range of $3.48-$3.52.

Zacks Rank

WEC Energy has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

DTE Energy Company (NYSE:DTE) delivered first-quarter 2019 operating earnings per share of $2.05, which beat the Zacks Consensus Estimate of $1.95 by 5.1%.

NextEra Energy, Inc (NYSE:NEE) reported first-quarter 2019 adjusted earnings of $2.20 per share, which beat the Zacks Consensus Estimate of $2.01 by 9.4%.

FirstEnergy Corporation (NYSE:FE) delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%.

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