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A month has gone by since the last earnings report for WEC Energy Group (WEC). Shares have added about 3.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is WEC Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
WEC Energy Q4 Earnings Miss Estimates, Revenues Rise Y/Y
WEC Energy Group reported fourth-quarter 2024 earnings of $1.43 per share, which missed the Zacks Consensus Estimate of $1.44 by 0.7%. However, the bottom line increased 30% from the year-ago quarter’s $1.10.
WEC’s Revenues
Operating revenues of $2.28 billion missed the Zacks Consensus Estimate of $2.6 billion by around 12.1%. The top line increased 2.7% from $2.22 billion recorded in the year-ago quarter.
Full-year 2024 revenues totaled $8.6 billion, down 3.3% from last year’s recorded figure of $8.89 billion.
Highlights of WEC’s Earnings Release
Electricity consumption by small commercial and industrial customers increased 0.7% in 2024. The same for large commercial and industrial customers, excluding the iron ore mine, increased 0.1% year over year.
On a weather-normal basis, retail deliveries of electricity, excluding the iron ore mine, during 2024 increased 0.1%.
Total electric sales volume for the quarter was 10,566.4 thousand megawatt-hours, up 0.4% year over year.
Total operating expenses were $1.69 billion, down 10% from the year-ago level of $1.88 billion. This was due to lower cost of sales and a decrease in other operation and maintenance expenses.
Operating income totaled $590.9 million, up 73.1% from $341.4 million recorded in the year-ago quarter.
The company incurred an interest expense of $211.9 million, up 9.5% from the prior-year level of $193.5 million.
WEC’s Financial Position
As of Dec. 31, 2024, WEC had cash and cash equivalents of $9.8 million compared with $42.9 million as of Dec. 31, 2023.
As of Dec. 31, 2024, the company had a long-term debt of $17.2 billion compared with $15.4 billion as of Dec. 31, 2023.
Net cash provided by operating activities during 2024 was $3.21 billion compared with $3.02 billion in the year-ago period.
WEC’s Guidance
WEC reaffirmed its 2025 earnings projection in the range of $5.17-$5.27 per share. The Zacks Consensus Estimate for the metric is pegged at $5.23 per share, higher than the midpoint of the company’s guided range.
WEC Energy expects to invest $28 billion in the 2025-2029 period.