WEC ENERGY Reports Fourth Quarter Earnings Results for FY2022

Earnings Overview

On February 2 2023, WEC ENERGY ($NYSE:WEC) reported their financial results for the fourth quarter of FY2022, which ended on December 31 2022. Total revenue was USD 253.0 million, a 12.7% increase compared to the same period in the prior year. Additionally, net income rose 16.2% year-on-year to USD 2558.4 million.

Transcripts Simplified

Earnings at WEC Energy increased $0.07 compared to 2021 due to the resolution of historical appeals and recording ATC earnings at a 10.38% return on equity. Earnings at the Energy Infrastructure segment improved $0.14 in 2022 due to production tax credits from stronger wind production and the addition of a Jayhawk wind farm. Earnings at the Corporate and Other segment decreased $0.06, primarily due to rabbi trust performance and lower gains from the clean energy fund.

Net cash provided by operating activities increased $28 million and total capital expenditures and asset acquisitions were $2.7 billion in 2022, a $324 million increase compared to 2021. First quarter 2023 earnings guidance is projected to be in the range of $1.68 per share to $1.72 per share, and full year 2023 earnings guidance is reaffirmed at $4.58 to $4.62 per share.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Wec Energy. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Wec Energy. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Wec Energy. More…

Key Ratios Snapshot

Some of the financial key ratios for Wec Energy are shown below. More…

Stock Price

The group achieved a strong performance in terms of stock value, with the stock opening at $95.3 and closing at $94.9. This marks a positive sign for the company, which saw its stock rise steadily throughout the fourth quarter of the financial year. This indicates that the company was able to successfully make use of its various cost-saving measures and strategic investments.

Additionally, the company was able to take advantage of rising natural gas prices as well as an increase in renewable energy production, which helped boost its financials for the quarter. With a successful fourth quarter and a positive outlook for the future, WEC ENERGY is well-positioned to continue providing reliable and sustainable energy solutions for the long-term. Live Quote…

Analysis

At GoodWhale, we have done an analysis of WEC Energy’s fundamentals. Our Star Chart showed that WEC Energy is strong in dividend and profitability, and medium in asset and growth. We also gave it an intermediate health score of 6/10 with regard to its cashflows and debt, which suggests that it is likely to sustain future operations in times of crisis. In addition, we classified WEC Energy as a ‘gorilla’, a type of company that achieved stable and high revenue or earning growth due to its strong competitive advantage. Given these favorable fundamentals and potential for growth, WEC Energy may be of interest to value investors, dividend investors, and growth investors. Value investors will likely be drawn to the strong dividend and profitability scores, while dividend investors may be attracted to the potential for growing income streams. Finally, growth investors may be enticed by WEC Energy’s classification as a ‘gorilla’ – a company with strong competitive advantages and a history of growth. More…

Peers

WEC Energy Group Inc, a diversified energy holding company, engages in the business of providing electric and natural gas service through its subsidiaries. Dominion Energy Inc, Central Puerto SA, and Portland General Electric Co are some of WEC Energy Group’s competitors in the energy industry.

– Dominion Energy Inc ($NYSE:D)

Dominion Energy Inc is a leading provider of electricity and natural gas. The company serves more than 6 million customers in the United States. Dominion Energy Inc has a strong portfolio of assets and a commitment to safety, reliability, and customer service. The company’s market cap is 54.69B as of 2022 and its ROE is 7.47%. Dominion Energy Inc is a diversified energy company with a focus on electricity and natural gas. The company is one of the largest producers and transporters of energy in the United States. Dominion Energy Inc is committed to providing affordable, reliable, and clean energy to its customers.

– Central Puerto SA ($NYSE:CEPU)

Central Puerto SA is an Argentine electricity company that supplies power to the central and northern regions of the country. It has a market cap of 1.25B as of 2022 and a Return on Equity of 7.42%. The company generates, transmits, and distributes electricity through a network of over 3,000 kilometers of high-voltage lines and more than 60,000 kilometers of medium- and low-voltage lines. It also has a thermal power plant with a capacity of 1,200 MW.

– Portland General Electric Co ($NYSE:POR)

Portland General Electric Co is an electric utility company that serves customers in Oregon. As of 2022, the company had a market capitalization of $3.9 billion and a return on equity of 9.64%. The company is involved in the generation, transmission, and distribution of electricity, as well as the sale of electricity to retail and wholesale customers. Portland General Electric is the largest electricity provider in Oregon, serving over 800,000 customers.

Summary

Investors are feeling bullish about WEC ENERGY after the company reported strong fourth quarter earnings for FY2022. Total revenue was up 12.7% compared to the same period in the prior year, and net income rose 16.2%. This marks a positive trend for the company, as they continue to experience strong growth despite challenging market conditions.

With a bright outlook and healthy financials, WEC ENERGY is a good pick for long-term investments. Analysts believe that this stock will continue to generate returns in the future, making it an attractive option for investors.