Wisconsin Energy Corporation
) posted net operating earnings of 49 cents per share in the fourth
quarter of 2011, ahead of the Zacks Consensus Estimate of 47 cents
per share. However, the results fell short of the year-ago
quarter's operating earnings by 4 cents per share.
Wisconsin Energy's fiscal year 2011 operating earnings were
$2.18 per share compared with $1.92 per share reported in 2010. The
results exceeded the Zacks Consensus Estimate by 3 cents.
Earnings growth was driven by the positive contribution from the
company's Power the Future plan. Commercial operation of the new
second unit at the Oak Creek site, from January 2011, contributed
to the upsurge in results.
Earnings on a GAAP basis, for 2011 were $2.24 per share versus
$1.93 per share recorded in 2010. The 6 cent difference between
operating and GAAP earnings, for 2011, emanated from discontinued
Wisconsin Energy's total revenue in fourth-quarter 2011 was
$1,113.2 million, compared with $1,089.8 million in the year-ago
period, reflecting a growth of 2.1%.
Reported quarter revenue marginally surpassed the Zacks
Consensus Estimate of $1,101 million.
Wisconsin Energy's total revenue for 2011 upped 2.2% to $4,486.4
million from $4,202.5 million reported in the prior fiscal
Fiscal year 2011 revenue of the company was higher than the
Zacks Consensus Estimate of $4,435 million.
Total operating expenses during the quarter decreased marginally
by 0.05% during the fourth quarter 2011, while for the fiscal year
cost declined by 0.24% year over year. This resulted mainly from a
decline in the cost of goods sold.
For the fiscal year, operating expenses, as a percentage of
total revenue, declined by 521 basis points year over year, thus
benefiting the operating results of the company.
The growth in revenue and the decline in costs drove fiscal
operating income by 9.49% to $887.3 million from $810.4 million in
Net interest expenses in 2011 were $235.8 million versus $206.4
million in 2010, up 14.2%. The incremental interest expenses can be
attributed to a higher debt burden from the previous financial
Cash and cash equivalent at Wisconsin Energy as of December 31,
2011 were $14.1 million.
Cash from operating activities for 2011 was $993.4 million
versus $810.4 million in 2010.
Capital expenditure during the year was $830.8 million, which
reflected a growth of $32.6 million from $798.2 million incurred in
Long-term debt rose to $3,963.3 million from the prior-year level
of $3,802.1 million, as of December 31, 2010.
The company has been consistently paying dividends to shareholders.
On January 2012, the company announced a quarterly dividend of 30
cents, which reflects an increase of 4 cents from the prior
quarterly rate. This hiked quarterly dividend will be paid on March
1, 2012, to shareholders of record as on February 14, 2012.
The new annualized dividend rate will be $1.20 per share
reflecting a growth of 15.4% from the previous annualized rate of
$1.04 per share.
Xcel Energy Inc
), competing with Wisconsin Energy, announced operating earnings
for the fourth quarter 2011 of 29 cents per share, flat year over
year. The results of the company missed the Zacks Consensus
Estimate by a penny.
Xcel's operating earnings for 2011 were $1.72 per share compared
with $1.62 per share reported in 2010. The results also surpassed
the Zacks Consensus Estimate by 3 cents.
Not only did the company surpass our expectation, the rise in
consumption of electricity by large commercial and industrial
customers are positive signs for the company. Yet, an inkling of
doubt remains with the decline in Utility Gas revenue in both the
quarter and the fiscal year.
Wisconsin Energy currently retains a Zacks #2 Rank, which
translates into a short-term Buy rating.
Based in Milwaukee, Wisconsin, Wisconsin Energy, through its
subsidiaries, generates and distributes electricity in
Southeastern, East Central, and Northern Wisconsin, as well as in
the Upper Peninsula of Michigan. The company also distributes
WISC ENERGY CP (
): Free Stock Analysis Report
XCEL ENERGY INC (
): Free Stock Analysis Report
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