Wisconsin Energy Earnings: A Mixed Bag

Wisconsin Energy Corp. (NYSE:WEC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.03%.

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Wisconsin Energy Corp. Earnings Cheat Sheet

Results: Net income decreased -14.83% to $98.8 million (43 cents per diluted share) in the quarter versus a net gain of $116 million in the year-earlier quarter.

Revenue: Decreased 3.88% to $1.07 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wisconsin Energy Corp. reported adjusted net income of 43 cents per share. By that measure, the company beat the mean analyst estimate of $0.41. It missed the average revenue estimate of $1.11 billion.

Quoting Management: “Overall, sales to our large commercial and industrial customers came in better than forecast,” said Gale Klappa, chairman, president, and chief executive.  “Based on customer input, we had expected a decline in sales.  As the year progressed, however, we saw strength in several sectors — including food products, chemical manufacturing, metal fabrication and plastics…

…By virtually every meaningful measure, 2012 was an exceptional year for Wisconsin Energy,” noted Klappa.  “We achieved milestones in customer satisfaction, employee safety and network reliability.  We delivered solid earnings growth and made significant progress toward a dividend payout that is more competitive with our peers.”

Key Stats:

Revenue increased 2.95% from $1.04 billion in the previous quarter. Net income decreased 36.71% from $156.1 million in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.82 to a profit $0.84. For the current year, the average estimate is a profit of $2.32, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials.)