We expect diversified utility holding company
Wisconsin Energy Corporation
) to beat expectations when it reports fourth-quarter 2012
results on Jan 30, 2013.
Why a Likely Positive Surprise?
Our proven model shows that Wisconsin Energy is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Earnings Surprise Prediction or ESP (Read:
Zacks Earnings ESP: A Better Method
), which represents the difference between the Most Accurate
estimate and the Zacks Consensus Estimate, is at 2.38%. This is
very meaningful and a leading indicator of a likely positive
earnings surprise for shares.
Zacks #1 Rank (Strong 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 going into an
The combination of Wisconsin Energy's Zacks Rank #1 (Strong Buy)
and 2.38% ESP make us very confident in looking for a positive
earnings beat on Jan 30, 2013.
What is Driving the Better-Than-Expected
Strong contribution from Wisconsin Energy's recently completed
'Power the Future' plan, and steady progress on its two projects:
a biomass plant in Rothschild and the air quality control
improvement at the original Oak Creek units are expected to lead
to a positive earnings surprise in the forthcoming quarter.
The positive trend is seen in the trailing four quarter's average
surprise of 9.77%, which was greatly helped by the 17.54%
surprise in the last-reported quarter. This happened due to
decline in operation and maintenance costs, strong recovery of
fuel costs, and positive impacts from the share repurchase
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
Clean Energy Fuels Corp.
), Earnings ESP of +87.50% and Zacks Rank #2 (Buy)
Public Service Enterprise Group Inc.
), Earnings ESP of +5.26% and Zacks Rank #3 (Hold)
TECO Energy, Inc.
), Earnings ESP of +20.00% and Zacks Rank #3 (Hold)
CLEAN EGY FUELS (CLNE): Free Stock Analysis
PUBLIC SV ENTRP (PEG): Free Stock Analysis
TECO ENERGY (TE): Free Stock Analysis Report
WISC ENERGY CP (WEC): Free Stock Analysis
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