Earnings Preview for Wisconsin Energy (WEC)

Wisconsin Energy WEC is scheduled to report first-quarter 2011 results before the opening bell tomorrow, May 3. Analysts are looking for the utility company to announce that per-share earnings rose 16.7% from a year ago to $0.66. That is up from the consensus estimate of $0.63 some 90 days ago. Analysts also expect to see revenues of $1.4 billion for the quarter, an increase of 8.2% from the same period of last year. Milwaukee-based Wisconsin Energy provides electricity and natural gas to customers in Wisconsin and the upper peninsula of Michigan. Founded in 1981, the company also engages in the engineering, construction and development of power-generating facilities, as well as developing and investing in real estate properties such as business parks. Wisconsin Energy announced a two-for-one stock split earlier this year and also appointed a new chief financial officer. Looking ahead to the full year, analysts thus far anticipate year-over-year earnings growth of 7.2% to $2.07 per share. Revenue is expected to total $4.6 billion, which is an annual increase of 10.2%. The earnings estimate is in line with previously released guidance. Also note that Wisconsin Energy has beat consensus earnings estimates in the past five quarters. Wisconsin Energy has a dividend yield of 2.8% and a return on equity of 12.5%. The 16.3 trailing price-to-earnings ratio and the 1.9 price/earnings-to-growth ratio suggest overvaluation. Yet analysts on average have recommended buying WEC for more than 90 days. The share price reached a 52-week high of $31.39 this morning.