WEC Energy (WEC) To Report Q1 Earnings: What's In Store?

WEC Energy Group (NYSE:WEC) is slated to report first-quarter 2017 results before the market opens on May 2. In the last reported quarter, the company missed the Zacks Consensus Estimate by 1.61%. Let’s see how things are shaping up for this earnings season.

Factors to Consider

Taking into account a mild January and the timing of fuel recoveries, and assuming weather to be normal for the rest of the quarter, WEC Energy Group projects its first-quarter earnings to be in the range of $1.02–$1.06 per share.

Milder winter is expected to adversely impact demand for the utility services in the first quarter. Rising expenditure is also a concern as it might impact margins in the first quarter.

Earnings Whispers

Our proven model does not conclusively show that WEC Energy is likely to beat earnings this quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as you will see below:

Zacks ESP: The company’s Earnings ESP is +1.89%. This is because the Most Accurate estimate is pegged at $1.08, higher than the Zacks Consensus Estimate of $1.06.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

WEC Energy Group, Inc. Price and EPS Surprise

WEC Energy Group, Inc. Price and EPS Surprise | WEC Energy Group, Inc. Quote

Zacks Rank: WEC Energy’s Zacks Rank #4 (Sell), when combined with its Earnings ESP of +1.89%, makes a beat unlikely this quarter.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Strong Sell) going into the earnings announcement, especially when the company is seeing a negative estimate revisions momentum.

Stocks to Consider

Here are some companies from the Zacks categorized Utility – Electric Power industry that you may want to consider instead, as our model shows that these have the right combination of elements to post an earnings beat this quarter:

NiSource Inc. (NYSE:NI) is expected to release first-quarter 2017 results on May 3. The company has an Earnings ESP of +3.08% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pinnacle West Capital Corporation (NYSE:PNW) has an Earnings ESP of +7.14% and a Zacks Rank #3. The company is expected to release first-quarter 2017 results on May 2.

Dominion Resources Inc. (NYSE:D) has an Earnings ESP of +2.15% and a Zacks Rank #3. The company is expected to release first-quarter 2017 results on May 4.

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