Earnings Announcement - MGE Energy, Inc. announced its second quarter 2024 earnings on August 7, 2024[5] Stock Information - The company is listed on the NASDAQ Stock Market under the trading symbol MGEE[2] Financial Reporting - No financial statements of businesses acquired or pro forma financial information were reported[6]

Financial Performance - MGE Energy's earnings for the three months ended June 30, 2024, were $23.8 million or $0.66 per share, a decrease from $28.7 million or $0.79 per share in the same period last year[98]. - MGE Energy's net income for the six months ended June 30, 2024, was $57.6 million, down from $59.8 million in the same period last year[99]. - Electric revenue decreased by $1.1 million to $120.383 million for the three months ended June 30, 2024, compared to $121.492 million in the same period of the prior year, reflecting a 0.9% decline[116]. - Gas revenue decreased by $1.2 million to $25.116 million for the three months ended June 30, 2024, compared to $26.291 million in the same period of the prior year, a decline of 4.5%[121]. - Electric revenues decreased by $2.2 million during the six months ended June 30, 2024, with total retail electric revenues at $236.5 million, a 0.9% decline from $238.7 million in the prior year[135]. - Gas revenue decreased by $26.0 million, totaling $100.3 million, a 20.6% decline compared to $126.3 million in the prior year[141]. Sales and Revenue Trends - Electric utility earnings decreased due to unfavorable weather, with residential sales down approximately 4% for both the three and six months ended June 30, 2024[100]. - Gas utility earnings were impacted by lower retail sales, which decreased approximately 8% due to warmer than normal weather in the first quarter of 2024[101]. - Residential sales volume decreased by approximately 4% year-over-year, driven by warmer weather conditions in April 2024 compared to April 2023[117]. - Residential electric sales volume decreased by 3.6%, while commercial sales increased by 0.9%[135]. Rate Changes - The PSCW approved a 1.54% increase to electric rates and a 2.44% increase to gas rates for 2024, with further increases planned for 2025[102]. - The average retail rate for electric customers increased by approximately 1.54% in December 2023, resulting in $1.2 million higher rates charged during the three months ended June 30, 2024[117]. - The average retail rate per therm for gas increased by approximately 4% year-over-year, reflecting a decrease in natural gas commodity costs[123]. - The average retail rate per therm for gas customers decreased approximately 14% compared to the same period in the prior year[143]. Operational Expenses - Operations and maintenance expenses increased by $4.7 million to $X million during the three months ended June 30, 2024, primarily due to increased customer accounts costs and transmission costs[125]. - Operations and maintenance expenses increased by $8.8 million, primarily due to increased customer accounts costs of $4.6 million and increased transmission costs of $2.9 million[145]. - Electric depreciation expense increased by $1.5 million, attributed to the placement of Badger Hollow II in service in December 2023[128]. - Electric depreciation expense increased by $3.2 million, attributed to the purchase of West Riverside and the in-service date of Badger Hollow II[148]. Renewable Energy and Environmental Goals - MGE aims for an 80% carbon reduction target by 2030 from 2005 levels, focusing on growing renewable generation and transitioning to natural gas[107]. - MGE plans to retire Columbia Unit 1 and Unit 2 by June 2026 as part of its transition away from coal[108]. - MGE continues to expand renewable generation, with a 29% increase in renewable generation driven by new sources including Badger Hollow II[139]. - MGE has set a goal to achieve net-zero methane emissions from its natural gas distribution system by 2035[111]. Capital and Financing - MGE has $330 million of remaining regulatory authority to issue long-term debt for financing authorized utility capital expenditures[113]. - Capital expenditures for MGE Energy and MGE totaled $111.6 million during the six months ended June 30, 2024, reflecting an increase of $3.9 million from the same period in 2023[161]. - Cash provided by operating activities was $130.4 million for the six months ended June 30, 2024, compared to $127.0 million in the prior year[157]. - MGE Energy's capitalization ratios as of June 30, 2024, were 59.9% common shareholders' equity and 37.0% long-term debt[165]. Regulatory and Compliance Issues - MGE is monitoring potential disruptions in solar procurement due to new tariffs and regulations, which may impact costs and timelines for solar projects[112]. - The Uyghur Forced Labor Protection Act may impact the supply of solar panels, but MGE's suppliers have met compliance requirements[173]. - The U.S. Department of Commerce found that Chinese manufacturers were circumventing tariffs on solar panels, leading to potential cost increases for MGE's solar projects[174]. - The Biden Administration announced an increase in tariffs on solar cells and modules from 25% to 50%, which may affect MGE's future solar projects[174]. - MGE expects to request recovery of any cost increases in future rate proceedings due to potential disruptions from tariffs and compliance issues[174]. Other Income and Investments - Nonregulated energy operations segment net income increased to $6.0 million for the three months ended June 30, 2024, compared to $5.5 million in the same period of the prior year[130]. - Nonregulated energy operations segment net income increased to $11.9 million for the six months ended June 30, 2024, compared to $11.0 million in the same period of 2023[150]. - Other income from transmission investment operations increased to $2.8 million for the three months ended June 30, 2024, compared to $2.6 million in the same period of the prior year[131]. - Other income increased by $0.9 million due to decreased investment distribution losses from venture capital funds compared to the prior year[132]. - Other income from all other operations increased by $1.1 million, primarily due to decreased investment distribution losses from venture capital funds[152]. Market Risks and Future Outlook - MGE's share of ATC's earnings reflected a $0.6 million reduction in reserves due to the May 2020 FERC order[170]. - MGE's estimated possible loss related to the First Complaint Period is approximately $0.9 million, inclusive of interest and net of tax[171]. - MGE derived approximately 6.7% of its net income from its investment in ATC for the six months ended June 30, 2024[172]. - There were no material changes to the market risks disclosed in the 2023 Annual Report on Form 10-K[175]. - MGE Energy expects to begin issuing new shares of common stock in the second half of 2024 as part of its Direct Stock Purchase and Dividend Reinvestment Plan[156]. - MGE's share of ATC's earnings for the six months ended June 30, 2023, was 6.2% of net income[172].

The market expects MGE (MGEE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report. On the other hand, if they miss, the stoc ...

Company Overview - MGE (MGEE) is a utility stock headquartered in Madison, with a year-to-date price change of 4.01% [2] - The company currently pays a dividend of $0.43 per share, resulting in a dividend yield of 2.27%, which is lower than the Utility - Electric Power industry's yield of 3.68% and the S&P 500's yield of 1.62% [2] Earnings and Growth - For the fiscal year 2024, MGE expects solid earnings growth, with the Zacks Consensus Estimate at $3.69 per share, reflecting a 13.54% increase from the previous year [5] - The company's current annualized dividend of $1.71 has increased by 2.4% from last year, and over the past five years, MGE has raised its dividend five times, averaging an annual increase of 4.95% [8] Dividend Strategy - MGE is considered a strong dividend play, appealing to income investors who prioritize consistent cash flow from investments [7] - The company's payout ratio stands at 52%, indicating that it pays out 52% of its trailing 12-month earnings per share as dividends [8]

Core Viewpoint - MGE Energy Inc. (MGEE) is positioned as a strong investment choice due to its solid fundamentals, favorable growth estimates, and robust financial position [1] Growth Projections - The Zacks Consensus Estimate indicates sales growth of 2.4% for 2024 and 3.2% for 2025 compared to the previous year [2] Return on Equity - MGE Energy's return on equity for the trailing 12 months is 10.6%, outperforming the industry average of 9.91%, indicating higher efficiency in utilizing shareholders' funds [3] Dividend Payments - MGE Energy has a long history of rewarding shareholders with dividends, having paid cash dividends for over 110 years and approved annual increases for the past 48 years [4][10] Debt to Capital - The company's debt to capital ratio at the end of Q1 2024 was 38.24%, significantly lower than the industry average of 54.69%, suggesting lower capital servicing expenses in a high interest-rate environment [11] Price Performance - Over the past six months, MGE Energy's stock has increased by 7.8%, while the industry has seen a decline of 2.3% [12] Zacks Rank - MGE Energy currently holds a Zacks Rank of 2 (Buy), indicating a favorable investment outlook [8]

For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. MGE (MGEE) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? Let's take a closer look at the stock's year-todate performance to find out. MGE is one of 106 individual stocks in the Utilities sector. Collectively, these companies sit at #9 in the Zacks Sector Rank. The Zacks Sector Rank ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, ...

Core Viewpoint - MGE Energy Inc. (MGEE) is considered a strong investment choice due to its solid fundamentals, favorable growth estimates, and a Zacks Rank 2 (Buy) [1] Growth Projections - The Zacks Consensus Estimate for 2024 earnings has increased by 0.3% over the past 60 days, currently projected at $3.69 per share [2] - The Zacks Consensus Estimate for 2024 sales is set at $706.8 million, indicating a year-over-year growth of 2.4% [2] Dividend - MGE Energy has a long history of rewarding shareholders with cash dividends, having paid them for over 110 years and approved annual increases for the past 48 years [3] - The current dividend yield for MGEE is 2.13%, which surpasses the Zacks S&P 500 composite average yield of 1.57% [3] Debt to Capital - As of the end of the first quarter of 2024, MGE Energy's debt to capital ratio was 38.24%, significantly lower than the industry average of 54.69%, indicating efficient debt management [4] Return on Equity - The company's return on equity for the trailing 12 months stands at 11.72%, outperforming the industry average of 9.91%, reflecting higher efficiency in utilizing shareholders' funds [5] Price Performance - Over the past year, MGE Energy's stock has appreciated by 6.2%, compared to a 5.6% increase in the industry [6] Other Stocks to Consider - Other top-ranked stocks in the same industry include DTE Energy (DTE), Evergy (EVRG), and Public Service Enterprise Group (PEG), all carrying a Zacks Rank 2 [7] - Long-term earnings growth projections for these companies are 8.2% for DTE Energy, 5% for Evergy, and 5.36% for Public Service Enterprise Group [7] Recent Earnings Estimate Changes - In the past 60 days, the Zacks Consensus Estimate for 2024 earnings has risen by 0.2% for DTE Energy, and by 0.3% for both Evergy and Public Service Enterprise Group [8]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, particularly in the financial sector, to achieve exceptional returns, although identifying such stocks can be challenging due to their inherent risks and volatility [1] Group 1: Growth Stock Identification - The Zacks Growth Style Score system aids in identifying promising growth stocks by analyzing real growth prospects beyond traditional metrics [2] - MGE (MGEE) is currently highlighted as a recommended growth stock, possessing a favorable Growth Score and a top Zacks Rank [2] Group 2: Earnings Growth - Earnings growth is a critical factor for attracting investor interest, with double-digit growth being particularly desirable for growth investors [4] - MGE's projected EPS growth for the current year is 13.5%, significantly surpassing the industry average of 6.4% [5] Group 3: Cash Flow Growth - High cash flow growth is essential for growth-oriented companies, allowing them to fund new projects without relying on external financing [6] - MGE's year-over-year cash flow growth stands at 11%, exceeding the industry average of 5.2% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 9.2%, compared to the industry average of 5.9% [7] Group 4: Earnings Estimate Revisions - Positive trends in earnings estimate revisions are correlated with stock price movements, making them an important consideration for investors [8] - MGE's current-year earnings estimates have been revised upward, with the Zacks Consensus Estimate increasing by 0.3% over the past month [8] Group 5: Overall Assessment - MGE has achieved a Growth Score of B and a Zacks Rank of 2, indicating positive earnings estimate revisions and positioning it as a potential outperformer for growth investors [9][10]

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, ...