We expect diversified utility company
Wisconsin Energy Corporation
) to beat expectations when it reports third-quarter 2013 results
on Oct 30, 2013.
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Why a Likely Positive Surprise?
Our proven model shows that Wisconsin Energy is likely to beat
earnings because it has the right combination of key factors.
Positive Zacks ESP:
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +1.79%. This is meaningful and a leading indicator
of a likely positive earnings surprise for this company.
Zacks #2 Rank (Buy):
We note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell-rated
stocks (#4 and 5) should never be considered while going into an
The combination of Wisconsin Energy's Zacks Rank #2 (Buy) and
+1.79% ESP make us confident of a positive earnings beat on Oct
What is Driving the Better-than-Expected
We appreciate Wisconsin Energy's effort toward upgrading existing
infrastructure while adding new assets. The company continuously
invests substantial amounts to improve its aging distribution
infrastructure, constructing blocks and installing pipes and
poles. These initiatives will enable the company to provide
uninterrupted services to its customers, thereby improving
We expect demand for utility to improve in the upcoming quarters,
on the heels of gradual improvement at the state of Wisconsin's
economy, drop in unemployment rate and customer switching to
natural gas from propane. In addition, increase in customer
counts will also help Wisconsin Energy to improve its
Wisconsin Energy has completed a 10-year "Power the Future" plan.
These initiatives will help the company to generate adequate
electricity to meet the growing demand for power in its service
areas, that reflected in its last four earnings beat with an
average earnings surprise of 10.03%. We expect this initiative
will continue to benefit the company and its positive effects
will reflect in the results of the company.
Other Stocks to Consider
Wisconsin Energy is not the only company looking up this earnings
season. We also see likely earnings beat coming from other
Alliant Energy Corp.
), Earnings ESP of +4.55% and Zacks Rank #2 (Buy).
), Earnings ESP of +1.91% and Zacks Rank #2 (Buy).
), Earnings ESP of +1.49% and Zacks Rank #3 (Hold).