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FirstEnergy's (FE) Q2 Earnings Beat Estimates, Revenues Miss

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FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%. Quarterly earnings, however, declined 6.56% from the year-ago quarter’s figure.

On a GAAP basis, the company’s earnings amounted to 57 cents per share compared with 58 cents earned in the prior-year quarter.

Total Revenues

FirstEnergy generated revenues of $2,522 million in the second quarter, which missed the Zacks Consensus Estimate of $2,562 million by 1.56%. The figure, however, inched up 0.24% from $2,516 million in the year-ago quarter.

FirstEnergy Corporation Price, Consensus and EPS Surprise

FirstEnergy Corporation Price, Consensus and EPS Surprise

FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote

Highlights of the Release

Residential sales increased 17.1% on a year-over-year basis. Commercial deliveries declined 14.4% and industrial sales fell 11.7% year over year. Total distribution deliveries dipped 3.1% from the prior-year quarter’s level due to the ongoing pandemic impact on commercial and industrial sales.

Total operating expenses in the quarter under review came in at $2,007 million, up 3.9% from $1,931 million in the prior-year quarter.

In the second quarter, operating income was $515 million, down 12% from $585 million in the year-ago quarter.

Financial Update

FirstEnergy had cash, cash equivalents and restricted cash worth $165 million as of Jun 30, 2020 compared with $679 million on Dec 31, 2019.

Long-term debt and other long-term obligations as of Jun 30, 2020 were $21,980 million, up from $19,618 million on Dec 31, 2019.

Net cash provided from operating activities in the first half of 2020 was $150 million compared with $625 million in first-half 2019.

Guidance

Management reaffirmed 2020 earnings per share guidance in the range of $2.40-$2.60 with the mid-point being higher than the current Zacks Consensus Estimate of $2.46. Also, the company issued third-quarter earnings outlook in the 73-83 cents band with the current Zacks Consensus Estimate of 74 cents being slightly above the lower end.

Zacks Rank

FirstEnergy carries a Zacks Rank #4 (Sell), currently.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

Fortis Inc. (FTS - Free Report) is scheduled to announce second-quarter 2020 results on Jul 30. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 41 cents.

Dominion Energy (D - Free Report) is scheduled to report second-quarter 2020 results on Jul 31. The Zacks Consensus Estimate for quarterly earnings stands at 83 cents per share.

American Electric Power (AEP - Free Report) is scheduled to announce second-quarter 2020 results on Aug 6. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.02.

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