WEC Energy Group Inc (WEC) Q3 2024 Earnings: EPS of $0.76 Beats Estimates, Revenue of $1.86 Billion Misses Expectations

WEC Energy Group Inc (WEC) Q3 2024 Earnings Overview

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Oct 31, 2024
Summary
  • Net Income: Reported at $240.1 million for Q3 2024, a decrease from $316.0 million in the same quarter last year.
  • GAAP Earnings Per Share (EPS): Achieved $0.76 for Q3 2024, which was above the analyst estimate of $0.74.
  • Adjusted Earnings: Excluding a charge related to capital expenditures, adjusted EPS was $0.82, down from $1.00 in Q3 2023.
  • Revenue: Totaled $1,863.5 million for Q3 2024, falling short of the analyst estimate of $1,933.57 million.
  • Electricity Deliveries: Retail deliveries increased by 0.7% in Q3 2024, with residential use up by 1.3% and small commercial and industrial consumption rising by 1.0%.
  • 2024 Earnings Guidance: Affirmed GAAP EPS guidance range of $4.74 to $4.84, with adjusted EPS guidance of $4.80 to $4.90, assuming normal weather conditions for the remainder of the year.
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On October 31, 2024, WEC Energy Group Inc (WEC, Financial) released its 8-K filing detailing the financial results for the third quarter of 2024. The company reported a net income of $240.1 million, or $0.76 per share, surpassing the analyst estimate of $0.74 per share. However, the company's revenue of $1,863.5 million fell short of the estimated $1,933.57 million.

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Company Background

WEC Energy Group Inc (WEC, Financial) is a leading energy company serving electric and gas customers across Illinois, Michigan, Minnesota, and Wisconsin. The company holds a 60% stake in American Transmission Co. Its asset portfolio comprises approximately 48% electric generation and distribution, 36% gas distribution, 10% electric transmission, and 6% unregulated renewable energy.

Performance and Challenges

WEC Energy Group Inc (WEC, Financial) reported a decrease in net income compared to the previous year, with earnings of $316.0 million, or $1.00 per share, in Q3 2023. The decline was partly due to a charge of $0.06 per share related to disallowed capital expenditures under the Qualifying Infrastructure Plant (QIP) rider by the Illinois Commerce Commission. Excluding this charge, adjusted earnings were $0.82 per share, still below the $1.00 per share from the previous year.

“We delivered another solid quarter, and we remain firmly on track for a strong 2024,” said Scott Lauber, president and CEO. “Our focus remains on the fundamentals of our business — financial discipline, customer satisfaction and operating efficiency — enhancing value for our customers and stockholders.”

Financial Achievements

Despite the challenges, WEC Energy Group Inc (WEC, Financial) maintained a strong financial position. The company affirmed its 2024 earnings guidance range of $4.74 to $4.84 per share on a GAAP basis and $4.80 to $4.90 per share on an adjusted basis. This guidance reflects the company's confidence in its operational efficiency and strategic initiatives.

Key Financial Metrics

For the first nine months of 2024, WEC Energy Group Inc (WEC, Financial) recorded a net income of $1.07 billion, or $3.40 per share, compared to $1.11 billion, or $3.52 per share, for the same period in 2023. The company's consolidated revenues for the first nine months totaled $6.3 billion, a decrease of $359.8 million from the previous year.

Metric Q3 2024 Q3 2023
Operating Revenues $1,863.5 million $1,957.4 million
Net Income $240.1 million $316.0 million
Earnings Per Share (EPS) $0.76 $1.00

Analysis and Outlook

WEC Energy Group Inc (WEC, Financial) continues to demonstrate resilience in a challenging regulatory environment. The company's focus on operational efficiency and customer satisfaction positions it well for future growth. However, the disallowance of certain capital expenditures highlights the regulatory risks inherent in the utilities sector. Investors should monitor the company's ability to navigate these challenges while maintaining its financial discipline.

Overall, WEC Energy Group Inc (WEC, Financial) remains a key player in the regulated utilities industry, with a strong asset base and a commitment to enhancing shareholder value. The company's strategic focus on renewable energy and infrastructure investments will be crucial in driving long-term growth.

Explore the complete 8-K earnings release (here) from WEC Energy Group Inc for further details.