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FirstEnergy (FE) Down 9.8% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for FirstEnergy (FE - Free Report) . Shares have lost about 9.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FirstEnergy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
FirstEnergy delivered third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%. Also, the bottom line rose 10.5% from the year-ago quarter’s figure.
On a GAAP basis, the company’s earnings increased to 84 cents per share from 73 cents earned in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $3,022 million in the third quarter, which outpaced the Zacks Consensus Estimate of $2,905.3 million by 4%. Also, the top line moved up 2% from $2,963 million in the year-ago quarter.
Highlights of the Release
Residential sales increased 5.1% on a year-over-year basis. Commercial deliveries declined 5.5% and industrial sales fell 6.3% year over year. Total distribution deliveries dipped 1.7% from the prior-year quarter’s level due to the ongoing pandemic’s impact on commercial and industrial sales.
Total operating expenses in the quarter under review came in at $2,301 million, up 0.8% from $2,282 million in the prior-year quarter.
In the third quarter, operating income was $721 million, up 5.9% from $681 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $296 million as of Sep 30, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Sep 30, 2020 were $22,203 million, up from $19,618 million on Dec 31, 2019.
Net cash provided by operating activities in the first nine months of 2020 was $851 million compared with $1,737 million in first nine months of 2019.
Guidance
Management reaffirmed its 2020 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate being $2.53.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, FirstEnergy has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
FirstEnergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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FirstEnergy (FE) Down 9.8% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for FirstEnergy (FE - Free Report) . Shares have lost about 9.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is FirstEnergy due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
FirstEnergy's Q3 Earnings & Revenues Beat Estimates
FirstEnergy delivered third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%. Also, the bottom line rose 10.5% from the year-ago quarter’s figure.
On a GAAP basis, the company’s earnings increased to 84 cents per share from 73 cents earned in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $3,022 million in the third quarter, which outpaced the Zacks Consensus Estimate of $2,905.3 million by 4%. Also, the top line moved up 2% from $2,963 million in the year-ago quarter.
Highlights of the Release
Residential sales increased 5.1% on a year-over-year basis. Commercial deliveries declined 5.5% and industrial sales fell 6.3% year over year. Total distribution deliveries dipped 1.7% from the prior-year quarter’s level due to the ongoing pandemic’s impact on commercial and industrial sales.
Total operating expenses in the quarter under review came in at $2,301 million, up 0.8% from $2,282 million in the prior-year quarter.
In the third quarter, operating income was $721 million, up 5.9% from $681 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $296 million as of Sep 30, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Sep 30, 2020 were $22,203 million, up from $19,618 million on Dec 31, 2019.
Net cash provided by operating activities in the first nine months of 2020 was $851 million compared with $1,737 million in first nine months of 2019.
Guidance
Management reaffirmed its 2020 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate being $2.53.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, FirstEnergy has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
FirstEnergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.