Wisconsin Energy Corp Earnings: Profit Falls, Snapping Streak of Rising Profits

S&P 500 (NYSE:SPY) component Wisconsin Energy Corporation (NYSE:WEC) reported its results for the fourth 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 Fourth Quarter

Results: Net income for the diversified utilities company fell to $116 million (50 cents per share) vs. $125.9 million (54 cents per share) a year earlier. This is a decline of 7.9% from the year earlier quarter.

Revenue: Rose 2.1% to $1.11 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Wisconsin Energy Corporation beat the mean analyst estimate of 47 cents per share. Analysts were expecting revenue of $1.1 billion.

Quoting Management: “Our sales to large commercial and industrial customers came in better than forecast,” said Gale Klappa, chairman, president, and chief executive. “We expected a decline in sales because of known plant closings in the region. As the year progressed, however, we saw strength in several sectors – including iron ore mining, specialty steel, industrial machinery, and printing and publishing.”

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the third quarter, net income rose 15.7% from the year earlier, while the figure increased 23.4% in the second quarter, 31.8% in the first quarter and 6.1% in the fourth quarter of the last fiscal year.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the third quarter, by 2 cents in the second quarter, and by 6 cents in the first quarter.

Revenue has risen the past four quarters. Revenue increased 8.2% to $1.05 billion in the third quarter. The figure rose 11.3% in the second quarter from the year earlier and climbed 5.8% in the first quarter from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved up from 72 cents a share to 75 cents over the last sixty days. The average estimate for the fiscal year has remained at $2.15 per share.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com