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FirstEnergy (FE) Beats Earnings and Revenue Estimates in Q4

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FirstEnergy Corporation (FE - Free Report) delivered fourth-quarter 2018 operating earnings of 50 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 4.17%. Quarterly earnings declined 13.7% year over year.

On a GAAP basis, the company generated earnings of 25 cents, against a loss of $5.62 incurred in the prior-year quarter.

In 2018, FirstEnergydelivered earnings of $2.59, up from $2.17 in 2017.

Total Revenues

FirstEnergy generated total revenues of $2,710 million in fourth-quarter 2018, which beat the Zacks Consensus Estimate of $2,668 million by 1.6%. The figure improved from $2,681 million in the year-ago quarter.

In 2018, FirstEnergy generated revenues of $11,261 million, up from $10,928 million a year ago.

FirstEnergy Corporation Price, Consensus and EPS Surprise

 

FirstEnergy Corporation Price, Consensus and EPS Surprise | FirstEnergy Corporation Quote

 

Highlights of the Release

Total electric delivery increased 418,000 megawatt-hours (MWH), or 1.2% year over year. Residential sales rose 0.5% on a year-over-year basis. Commercial and industrial sales rose 1.7% and 1.4% year over year, respectively. Total distribution deliveries increased by 1 cent per share primarily on the back of higher weather-related and industrial usage.

Heating-degree-days were up 7% year over year and 7% above normal/

Financial Update

FirstEnergy's cash and cash equivalents as of Dec 31, 2018 were $367 million, down from $588 million as of Dec 31, 2017.

Long-term debt and other long-term obligations as of Dec 31, 2018 were $17,751 million compared with $ 18,687 million as of Dec 31, 2017.

Net cash provided from operating activities in the last three months of 2018  was $852 compared with $1,046 million in the year ago quarter.

Guidance

The company’ management guided 2019 EPS range of $2.45 to $2.75, whose mid-point of $2.60 is higher than the current Zacks Consensus Estimate for the period of $2.55. Also, the company provided first-quarter earnings guidance in the range of 60-70 cents.

Zacks Rank

FirstEnergy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

NextEra Energy, Inc (NEE - Free Report) delivered fourth-quarter 2018 adjusted earnings of $1.49 per share, which lagged the Zacks Consensus Estimate of $1.51 by 1.3%.

American Electric Power Co., Inc (AEP - Free Report) generated fourth-quarter 2018 operating EPS of 72 cents, in line with the Zacks Consensus Estimate.

Xcel Energy Inc (XEL - Free Report) posted fourth-quarter 2018 operating earnings of 42 cents per share, in line with the Zacks Consensus Estimate.

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