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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
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.
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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FirstEnergy's (FE) Q2 Earnings Beat Estimates, Revenues Miss
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-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.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, Sheraz Mian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
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