Wisconsin Energy Corp Earnings: Keeping the Profitability Streak Alive

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Wisconsin Energy Corporation (NYSE:WEC) from reporting a profit boost in the first quarter. Wisconsin Energy, through its subsidiaries, conducts operations mainly in utility energy. Its main subsidiaries are Wisconsin Electric, Wisconsin Gas, and We Power.

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Wisconsin Energy Earnings Cheat Sheet for the First Quarter

Results: Net income for Wisconsin Energy Corporation rose to $172.1 million (74 cents per share) vs. $170.9 million (72 cents per share) in the same quarter a year earlier. This marks a rise of 0.7% from the year-earlier quarter.

Revenue: Fell 10.3% to $1.19 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wisconsin Energy Corporation fell in line with the mean analyst estimate of 74 cents per share. It fell short of the average revenue estimate of $1.28 billion.

Quoting Management: “We’re pleased with our first quarter results, considering that residential demand for natural gas was down by nearly 24 percent as compared to last year,” said Gale Klappa, chairman, president and chief executive officer.

Key Stats:

A year-over-year revenue decrease last quarter breaks a four-quarter streak of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 11.3%.

The company met estimates last quarter after toppling them in the two previous quarters. In the fourth quarter of the last fiscal year, it topped the mark by 2 cents, and in the third quarter of the last fiscal year, it was ahead by 6 cents.

Net income has increased 12.7% year-over-year on average across the last five quarters. The biggest gain came in the first quarter of the last fiscal year, when income climbed 31.8% from the year-earlier quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from 49 cents a share to 46 cents over the last ninety days. Over the past sixty days, the average estimate for the fiscal year has reached $2.27 abs per share, a decline from $2.28.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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