WEC Energy Group Earnings Preview: What to Expect

Milwaukee, Wisconsin-based WEC Energy Group, Inc. (WEC) provides regulated natural gas and electricity, and renewable and non-regulated renewable energy services. With a market cap of $30.7 billion, it operates through Wisconsin, Illinois, Other States, Electric Transmission, and Non-Utility Energy Infrastructure segments. The company is expected to release its Q3 earnings before the market opens on Thursday, Oct. 31. 

Ahead of the event, analysts expect the electricity and natural gas provider to report a profit of $0.84 per share, down 16% from $1 per share reported in the year-ago quarter. The company has surpassed or met Wall Street’s EPS projections in the past four quarters. Its adjusted EPS for the last reported quarter declined 27.2% year-over-year to $0.67 but exceeded the consensus estimates by 4.7%. 

For fiscal 2024, analysts expect WEC to report an adjusted EPS of $4.87, up 5.2% from $4.63 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 7.2% year-over-year to $5.22. 

WEC has gained 15.5% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 21.9% gains and the Utilities Select Sector SPDR Fund’s (XLU) 27.3% returns during the same time frame. 

Despite reporting a drop in topline and earnings, shares of WEC Energy Group experienced a marginal gain after the release of its Q2 earnings on Jul. 31. The company reported a 3.2% year-over-year decline in operating revenues to $1.8 billion, while steady operating expenses and rising other costs led to a 3.9% to 11.9% contraction in net margin, with net income dropping 27.1% to $211.3 million. However, the company surpassed Wall Street’s earnings estimates, leading to a positive momentum in stock prices.

The consensus opinion on WEC stock is cautious, with an overall “Hold” rating. Out of the 17 analysts covering the stock, four recommend “Strong Buy,” 10 advise “Hold,” one suggests “Moderate Sell,” and two advocate “Strong Sell” rating. As of writing, WEC is trading above its mean price target of $94.23. 

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.