Wisconsin Energy Corp.
) reported third-quarter 2013 pro forma earnings of 60 cents per
share, beating the Zacks Consensus Estimate by 4 cents. Earnings
were however down 10.4% year over year due to lower demand given
the mild weather.
Wisconsin Energy reported total revenue of $1,053.2 million,
surpassing the Zacks Consensus Estimate by 3.36%. The company's
revenue increased marginally from the year ago quarter.
Total operating expenses rose 4.8% year over year to $795.2
million due to an 11% and 9.6% escalation in cost of gas sold as
well as operation and maintenance expenses, respectively.
The increase in revenue was more than offset by higher
operating expenses. In the reported quarter, operating income
fell 8% year over year to $258.0 million.
As of Sep 30, 2013, Wisconsin Energy's cash and cash
equivalents were $18.5 million versus $35.6 million as of Dec 31,
Cash provided by operating activities during the first nine
months of 2013 was $1,050.3 million versus $992.4 million in the
first nine months of 2012.
Wisconsin Energy's capital expenditures in the first nine
months of 2013 were $497.7 million, up from $477.5 million
incurred in the first nine months of 2012.
Other Upcoming Releases
) is scheduled to release its third quarter results on Nov 7,
2013. The Zacks Consensus Estimate is pegged at 59 cents.
) is slated to release its third quarter earnings on Nov 1, 2013.
The Zacks Consensus Estimate is 73 cents.
Brookfield Infrastructure Partners L.P.
) is slated to release its third quarter earnings on Nov 6, 2013.
The Zacks Consensus Estimate is 76 cents.
Although Wisconsin Energy's earnings and revenue beat our
expectation in the third quarter, mild weather conditions were a
year-over-year drag on earnings. However, we believe the company
might benefit from the upcoming winter season assuming normal
winter weather which will lead to increased power demand.
In addition, Wisconsin Energy's strategic plan to shut down
its 407 megawatt Michigan coal plant after losing its biggest
customer, Cliff Natural Resources Inc., was ruled out by the
Midcontinent Independent System Operator (MISO).
This came as a big blow to the company. If Wisconsin Energy
fails to find another prospective buyer for the plant's output,
it could witness escalating cost pressure from the continued
operation of the facility.
Wisconsin Energy currently has a Zacks Rank #4 (Sell).
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