Wisconsin Energy Beats Earnings Est. - Analyst Blog
April 30 2013 - 12:50PM
Zacks
Wisconsin Energy
Corporation (WEC) posted first-quarter 2013 net operating
earnings of 76 cents per share, beating the Zacks Consensus
Estimate by 5 cents. The 2 cent year-over-year rise in
earnings was primarily driven by higher earnings at the company’s
We Power operations, positive impacts from the share repurchase
program, and increase in electricity consumption by the
residential, small commercial as well as industrial customers.
Total Revenue
Wisconsin Energy reported total revenue of $1,275.2 million,
beating the Zacks Consensus Estimate by $25.2 million. On a
year-over-year basis, revenues increased 7.1% on higher demand for
natural gas in winter.
First-Quarter Operational Update
Total operating expenses increased 6.6% year over year to $954.2
million due to a rise in cost of goods sold, and higher fuel and
purchased power costs, other operation and maintenance costs and
depreciation and amortization expenses.
However, this increase in operating expenses was more than offset
by higher revenues. Operating margin was 25.2% compared with 24.8%
a year-ago.
Financials
Cash and cash equivalents as of Mar 31, 2013 were $24.7 million
versus $35.6 million as of Dec 31, 2012.
Long-term debt decreased to $4.4 billion as of Mar 31, 2013 from
$4.5 billion as of Dec 31, 2012.
Cash from operating activities during the first three months of
2013 was $330.3 million versus $340.5 million in the year-ago
comparable period.
Capital expenditures were $133.6 million, down from $142.3 million
incurred in the prior-year quarter.
Guidance
Wisconsin Energy reaffirmed its earnings guidance for 2013 at $2.38
to $2.48 per share.
Other Company Releases
Brookfield Infrastructure Partners L.P. (BIP) is
slated to release its first quarter earnings on May 2. The Zacks
Consensus Estimate is 84 cents per share.
Calpine Corp. (CPN) is slated to release its first
quarter earnings on May 2. The Zacks Consensus Estimate is a loss
of 6 cents per share.
ALLETE Inc. (ALE) is slated to release its first
quarter earnings on May 8. The Zacks Consensus Estimate is 75 cents
per share.
Our Take
Not only did Wisconsin Energy outperform earnings and revenues, it
also enjoyed a rise in consumption of electricity by residential,
and small commercial and industrial customers in the first quarter.
In addition, it served 3,000 electricity and 6,000 natural gas
additional customers at the end of the quarter against the year-ago
quarter.
Moreover, we expect Wisconsin Energy’s ‘Power the Future’ plan, and
its internal growth projects including a biomass plant in
Rothschild to act as catalysts for its future performance.
Wisconsin Energy Corporation currently has a Zacks Rank #3
(Hold).
Milwaukee, Wis.-based Wisconsin Energy Corporation generates and
distributes electricity in Southeastern, East Central, and Northern
Wisconsin, as well as in the Upper Peninsula of Michigan. The
company also distributes natural gas.
ALLETE INC (ALE): Free Stock Analysis Report
BROOKFIELD INFR (BIP): Free Stock Analysis Report
CALPINE CORP (CPN): Free Stock Analysis Report
WISC ENERGY CP (WEC): Free Stock Analysis Report
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