Wisconsin Energy Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Wisconsin Energy (NYSE:WEC) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. Wisconsin Energy, through its subsidiaries, conducts operations mainly in utility energy. Its main subsidiaries are Wisconsin Electric, Wisconsin Gas, and We Power.

Wisconsin Energy Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 42 cents per share, a decline of 14.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 50 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 42 cents during the last month. For the year, analysts are projecting profit of $2.33 per share, a rise of 6.9% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 10 cents, reporting net income of 67 cents per share against a mean estimate of profit of 57 cents per share.

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A Look Back: In the third quarter, profit rose 20.3% to $156.1 million (67 cents a share) from $129.8 million (55 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 1.3% to $1.04 billion from $1.05 billion.

Here’s how Wisconsin Energy traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Stock Price Performance: Between November 26, 2012 and January 24, 2013, the stock price had risen $2.18 (6%), from $36.40 to $38.58. The stock price saw one of its best stretches over the last year between November 23, 2012 and November 30, 2012, when shares rose for six straight days, increasing 3.7% (+$1.34) over that span. It saw one of its worst periods between December 18, 2012 and December 28, 2012 when shares fell for eight straight days, dropping 3.9% (-$1.50) over that span.

Analyst Ratings: There are mostly holds on the stock with nine of 12 analysts surveyed giving that rating.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 0.7% in the first quarter and 8.9% in the second quarter before increasing again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 10.3% in the first quarter and 4.7% in second quarter before falling again in the third quarter.

Wall St. Revenue Expectations: On average, analysts predict $1.13 billion in revenue this quarter, a rise of 1.8% from the year-ago quarter. Analysts are forecasting total revenue of $4.44 billion for the year, a decline of 1.1% from last year’s revenue of $4.49 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.78 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

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