We expect utility service provider
Wisconsin Energy Corp.
) to beat expectations when it reports first-quarter 2014 results
on Apr 30, 2014.
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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 two key factors.
Positive Zacks ESP:
(Expected Surprise Prediction), which represents the difference
between the Most Accurate estimate and the Zacks Consensus
Estimate, is +2.41%. This is a meaningful and leading indicator
of a likely positive earnings surprise for this company.
Zacks #2 Rank (Buy):
The 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 earnings
The combination of Wisconsin Energy's Zacks Rank #2 (Buy) and
+2.41% ESP make us confident of a positive earnings beat on Apr
What is Driving Better-than-Expected Earnings?
Wisconsin Energy could be up for another bottom-line
outperformance in first quarter 2014 following its positive
earnings streak in the last four quarters. A key factor that
could act as a growth driver includes the steady economic
improvement in the state of Wisconsin.
Continued customer additions signal better earnings prospects for
the company in the first quarter. Wisconsin Energy witnessed a
6.4% and a more than 15% increase in electric service connections
as well as natural gas installations, respectively in 2013 from
In addition, Wisconsin Energy's ambitious biomass-plant attained
full commercial operability in Nov 2013. This will allow the
company to meet rising industrial demand for electricity and in
turn will lend additional upside to its sales stream.
Moreover, Wisconsin Energy's cost-abatement efforts via gradual
conversion of its coal-fired units to natural gas-fired plants
will help minimize operating costs. This could certainly enhance
the company's profitability.
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
NRG Yield, Inc.
), Earnings ESP of +23.53% and Zacks Rank #1 (Strong Buy).
Exelon Energy Corp.
), Earnings ESP of +6.94% and Zacks Rank #2 (Buy).
), Earnings ESP of +6.25% and Zacks Rank #2 (Buy).