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Why Is FirstEnergy (FE) Down 3.1% Since Its Last Earnings Report?
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A month has gone by since the last earnings report for FirstEnergy Corporation (FE - Free Report) . Shares have lost about 3.1% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is FE 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 drivers.
FirstEnergy reported first-quarter 2018 operating earnings of 67 cents per share, lagging the Zacks Consensus Estimate of 68 cents by 1.5%. Quarterly earnings improved 28.9% year over year to come in within the expected range of 60-70 cents.
On a GAAP basis, the company reported earnings of $2.54 per share compared with 46 cents in the prior-year quarter. The difference between GAAP and operating earnings in the reported quarter was due to the impact of one-time gain from the exit of competitive business.
Total Revenues
FirstEnergy generated total revenues of $2,976 million in first-quarter 2018, missing the Zacks Consensus Estimate of $3,262 million by 8.8%.
Revenues moved up 4.2% from $2,855 million in the year-ago quarter. The top line improved primarily on the back of higher regulated transmission and distribution revenues.
Highlights of the Release
Total electric delivery increased 5% year over year to 38,740 thousand megawatt-hours (MWh). Residential sales rose 8.1%, while commercial and industrial sales rose 3.6% and 2.8% year over year, respectively.
Due to higher weather-related usage, distribution earnings in the reported quarter increased 6 cents from the year-ago quarter.
Financial Update
FirstEnergy's cash on hand as of Mar 31, 2018 was $248 million, down from $588 million as of Dec 31, 2017.
Long-term debt and other long-term obligations as of Dec 31 were $16,740 million compared with $18,186 million as of Dec 31, 2017.
Net cash (used)/provided from operating activities was ($880) million, compared with $785 million provided in the first quarter of 2017.
Guidance
FirstEnergy reiterated its operating earnings guidance for 2018 in the range of $2.25-$2.55 per share. For the second quarter of 2018, earnings are estimated in the range of 47-57 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.
At this time, FE has a poor Growth Score of F. Its Momentum is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, FE has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is FirstEnergy (FE) Down 3.1% Since Its Last Earnings Report?
A month has gone by since the last earnings report for FirstEnergy Corporation (FE - Free Report) . Shares have lost about 3.1% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is FE 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 drivers.
FirstEnergy Lags Q1 Earnings Estimates, Reaffirms View
FirstEnergy reported first-quarter 2018 operating earnings of 67 cents per share, lagging the Zacks Consensus Estimate of 68 cents by 1.5%. Quarterly earnings improved 28.9% year over year to come in within the expected range of 60-70 cents.
On a GAAP basis, the company reported earnings of $2.54 per share compared with 46 cents in the prior-year quarter. The difference between GAAP and operating earnings in the reported quarter was due to the impact of one-time gain from the exit of competitive business.
Total Revenues
FirstEnergy generated total revenues of $2,976 million in first-quarter 2018, missing the Zacks Consensus Estimate of $3,262 million by 8.8%.
Revenues moved up 4.2% from $2,855 million in the year-ago quarter. The top line improved primarily on the back of higher regulated transmission and distribution revenues.
Highlights of the Release
Total electric delivery increased 5% year over year to 38,740 thousand megawatt-hours (MWh). Residential sales rose 8.1%, while commercial and industrial sales rose 3.6% and 2.8% year over year, respectively.
Due to higher weather-related usage, distribution earnings in the reported quarter increased 6 cents from the year-ago quarter.
Financial Update
FirstEnergy's cash on hand as of Mar 31, 2018 was $248 million, down from $588 million as of Dec 31, 2017.
Long-term debt and other long-term obligations as of Dec 31 were $16,740 million compared with $18,186 million as of Dec 31, 2017.
Net cash (used)/provided from operating activities was ($880) million, compared with $785 million provided in the first quarter of 2017.
Guidance
FirstEnergy reiterated its operating earnings guidance for 2018 in the range of $2.25-$2.55 per share. For the second quarter of 2018, earnings are estimated in the range of 47-57 cents.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been two revisions higher for the current quarter.
FirstEnergy Corporation Price and Consensus
FirstEnergy Corporation Price and Consensus | FirstEnergy Corporation Quote
VGM Scores
At this time, FE has a poor Growth Score of F. Its Momentum is doing a lot better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
Estimates have been trending upward for the stock and the magnitude of these revisions looks promising. Notably, FE has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.