Markets
WEC

Wisconsin Energy Beats Earnings Estimates, Revenues Lag - Analyst Blog

Wisconsin Energy CorporationWEC reported first-quarter 2015 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 82 cents by 9.8%. Quarterly earnings lagged the year-ago figure by a penny.

On a GAAP basis, reported earnings were 86 cents per share compared with 90 cents per share a year ago. The difference between GAAP and adjusted earnings was due to a charge of 4 cents related to the impending acquisition of Integrys Energy Group, Inc. TEG .

Total Revenues

In the quarter under review, Wisconsin Energy's total revenues were $1,387.9 million, missing the Zacks Consensus Estimate of $1,667 million by 16.7% and declining 18.1% from $1,695 million a year ago.

The decline in total revenues was due to a much harsher winter and higher spot market prices for natural gas in the prior-year quarter.

Quarterly Operational Update

Total operating expenses declined 21.7% year over year to $1,031.6 million in the first quarter on the back of effective cost control.

Operating income in the quarter stood at $358.8 million, down 6.0% from $381.8 million a year ago.

The company's interest expenses decreased 4.2% year over year to $59.7 million due to a decline in long-term debt.

At Mar 2015 end, the number of natural gas and electricity customers increased by 9,800 and 6,100, respectively, from the prior-year level.

Financial Condition

As of Mar 31, 2015, Wisconsin Energy had cash and cash equivalents of $65.2 million compared with $61.9 million as of Dec 31, 2014.

The company's long-term debt decreased to $4,169.2 million as of Mar 31, 2015, from $4,186.4 million as of Dec 31, 2014.

Cash flow from operating activities was $329.7 million in first quarter of 2015, down from $385 million in the year-ago period.

Wisconsin Energy invested $149.5 million during the reported quarter compared with $129.2 million in the prior-year period.

Other Company Releases

CMS Energy Corp. CMS reported first-quarter earnings of 73 cents per share, beating the Zacks Consensus Estimate of 66 cents by 10.6%

Entergy Corp. ETR reported first-quarter 2015 operational earnings of $1.68 per share, outpacing the Zacks Consensus Estimate of $1.30 by 29.2%.

Zacks Rank

Wisconsin Energy currently holds a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WISC ENERGY CP (WEC): Free Stock Analysis Report

CMS ENERGY (CMS): Free Stock Analysis Report

ENTERGY CORP (ETR): Free Stock Analysis Report

INTEGRYS ENERGY (TEG): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

WEC CMS ETR

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More