WEC Energy Group, Inc. (WEC), headquartered in Milwaukee, Wisconsin, provides regulated natural gas and electricity, and renewable and nonregulated renewable energy services. Valued at $30.2 billion by market cap, the company generates electricity from many sources, including renewables, and handles natural gas distribution, electric transmission, and power plants. Its infrastructure spans 35,500 miles of overhead and 36,500 miles of underground distribution lines, with extensive gas mains, transmission lines, and storage capacity. The leading energy company is expected to announce its fiscal fourth-quarter earnings for 2024 on Thursday, Feb. 6.
Ahead of the event, analysts expect WEC to report a profit of $1.47 per share on a diluted basis, up 33.6% from $1.10 per share in the year-ago quarter. The company beat or matched Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect WEC to report EPS of $4.89, up 5.6% from $4.63 in fiscal 2023. Its EPS is expected to rise 7.2% year over year to $5.24 in fiscal 2025.
WEC stock has underperformed the S&P 500’s ($SPX) 24.4% gains over the past 52 weeks, with shares up 15.4% during this period. Similarly, it underperformed the Utilities Select Sector SPDR Fund’s (XLU) 21.3% gains over the same time frame.
WEC's underperformance is due to reduced demand, especially from large commercial and industrial customers, alongside rising interest expenses and debt, leading to financial pressures and weakened investor confidence.
On Oct. 31, WEC shares closed down marginally after reporting its Q3 results. Its revenue was $1.86 billion, falling short of Wall Street forecasts of $1.93 billion. The company’s adjusted EPS of $0.82, surpassed analyst estimates of $0.70. WEC expects full-year adjusted EPS to be between $4.80 and $4.90.
Analysts’ consensus opinion on WEC stock is cautious, with a “Hold” rating overall. Out of 17 analysts covering the stock, four advise a “Strong Buy” rating, 12 give a “Hold,” and one recommends a “Strong Sell.” WEC’s average analyst price target is $99.17, indicating a potential upside of 3.8% from the current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
