Westar Energy’s Revenue Falls in 3Q15

Westar’s price movement

Westar Energy (WR) has a market capitalization of $5.6 billion. Westar’s YTD (year-to-date) price movement has been a mix of rises and falls in 2015. After its earnings report, Westar fell by 0.43% to close at $39.51 per share as of November 3, 2015. The stock’s price movements on a weekly, monthly, and YTD basis are -2.8%, 2.5%, and -1.3%, respectively.

Westar’s stock broke the support of its 20-day, 50-day, and 200-day moving averages throughout 2015. Currently, it’s trading at -0.82% below its 20-day moving average, 4.1% above its 50-day moving average, and 5.8% above its 200-day moving average.

The PowerShares DWA Utilities Momentum ETF (PUI) invests 2.2% of its holdings in Westar Energy. The ETF tracks an index of US utility companies selected and weighted by price momentum. The YTD price movement of PUI is -4.0%. The First Trust Utilities AlphaDEX ETF (FXU) invests 1.7% of its holdings in Westar.

Competitors of Westar Energy and their market capitalizations are as follows:

• Xcel Energy (XEL) — $18.2 billion

• Ameren (AEE) — $10.6 billion

• Great Plains Energy (GXP) — $4.2 billion

• Alliant Energy (LNT) — $6.8 billion

Performance of Westar Energy in 3Q15

Westar Energy reported revenue of $732.8 million in 3Q15, a fall of 4.1% when compared to its net revenue of $764.0 million in 3Q14. Revenues from its residential, commercial, and industrial segments fell by 2.0%, 4.5%, and 6.8%, respectively, in 3Q15 as compared to revenues in 3Q14.

The company’s net income and EPS (earnings per share) fell to $140.6 million and $0.97 per share, respectively, in 3Q15, falls of 6.1% and 11.8% as compared to net income and EPS of $149.8 million and $1.10 per share in 3Q14.

In 3Q15, some of Westar’s key activities were as follows:

• Westar Energy and the Kansas Corporation Commission agreed to maintain the strong environment for transmission investment for customers.

• Westar declared a quarterly dividend of 36 cents per share on its common stock.

The company appointed some key personnel in 3Q15:

• Lloyd Jackson as executive director of Power Marketing

• Casey Bough as executive director of Gas Power Plants

• Debra Grunst as vice president of Information Technology

The company projects its EPS for fiscal 2015 and fiscal 2016 to be in the ranges of $2.18–$2.25 and $2.38–$2.53, respectively.

About Westar Energy

Westar Energy is an electric utility company. It generates and delivers electricity and protects the environment. It has 7,200 megawatts of electricity generation capacity fueled by coal, uranium, natural gas, wind, and landfill gas.