Why did WEC's Q4 earnings fall short of forecasts?

WEC Energy Group's Q4 earnings fell short of forecasts due to several key factors:

1. **Revenue Shortfall**: WEC's revenue for the quarter was $2.28 billion, which missed the forecasted $2.56 billion. This shortfall can be attributed to lower revenue from regulated natural gas and electricity services.
2. **Expense Management**: Despite the revenue shortfall, WEC showcased impressive expense discipline. The company's operating income surged by 13.6% year-over-year to $590.9 million after adjusting for $178.9 million of impairment expense incurred in the year-ago quarter.
3. **Dividend Payments**: WEC is known for maintaining dividend payments for 55 consecutive years, which could have impacted its financial flexibility during the quarter. The current yield of 3.38% suggests that the company is distributing a significant portion of its earnings as dividends.
4. **Strategic Investments**: WEC plans significant investments in renewable energy projects, which could have temporarily strained its financials. The company aims to issue $700-$800 million in common equity in 2025 to fund these investments.

In conclusion, WEC's Q4 earnings fell short of forecasts due to a combination of lower revenue from regulated services, strategic dividend payments, and planned investments in renewable energy. Despite these challenges, the company remains optimistic about its future prospects, projecting EPS between $5.17 and $5.27 for 2025.

|code|Ticker|Name|Date|Revenue Surprise|EPS Surprise|market_code|
|---|---|---|---|---|---|---|
|WEC|WEC.N|WEC Energy|2024 Q1|-2.5E8|0.06|169|
|WEC|WEC.N|WEC Energy|2024 Q2|-1.0E8|0.04|169|
|WEC|WEC.N|WEC Energy|2024 Q3|-7.0E7|0.12|169|
|WEC|WEC.N|WEC Energy|2024 Q4|-2.8E8|-0.04|169|

|code|Ticker|Name|Date|Basic Earnings per Share|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|WEC|WEC.N|WEC Energy|20240331|1.97|2.6802E9|169|
|WEC|WEC.N|WEC Energy|20240630|2.64|1.772E9|169|
|WEC|WEC.N|WEC Energy|20240930|3.4|1.8635E9|169|
|WEC|WEC.N|WEC Energy|20241231|4.83|2.2842E9|169|