Wisconsin Energy Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Wisconsin Energy (NYSE:WEC) will unveil its latest earnings on Wednesday, October 31, 2012. 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 estimate of analysts is for profit of 57 cents per share, a rise of 3.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 56 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 57 cents during the last month. Analysts are projecting profit to rise by 6.4% compared to last year’s $2.32.

Past Earnings Performance: Last quarter, the company beat estimates by 7 cents, coming in at net income of 51 cents a share versus the estimate of profit of 44 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose 8.9% to $119.3 million (51 cents a share) from $109.5 million (46 cents a share) the year earlier, exceeding analyst expectations. Revenue fell 4.7% to $944.7 million from $991.7 million.

Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price fell $2.47 (-6.1%), from $40.27 to $37.80. The stock price saw one of its best stretches over the last year between April 23, 2012 and April 30, 2012, when shares rose for six straight days, increasing 3.4% (+$1.21) over that span. It saw one of its worst periods between September 13, 2012 and September 21, 2012 when shares fell for seven straight days, dropping 2.8% (-$1.05) over that span.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.87 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. The company regressed in this liquidity measure from 1.09 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 21.9% to $1.43 billion while assets decreased 3.4% to $1.24 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last two quarters. In the first quarter, profit rose 0.7% before increasing in the second quarter.

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

Analyst Ratings: There are mostly holds on the stock with 10 of 13 analysts surveyed giving that rating.

Wall St. Revenue Expectations: On average, analysts predict $1.06 billion in revenue this quarter, a rise of 1% from the year-ago quarter. Analysts are forecasting total revenue of $4.62 billion for the year, a rise of 2.9% from last year’s revenue of $4.49 billion.

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

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