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FirstEnergy (FE) Q3 Earnings and Revenues Beat Estimates

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FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2019 operating earnings of 76 cents per share, which beat the Zacks Consensus Estimate of 73 cents by 4.1%. The figure fell 5% from the year-ago quarter’s earnings of 80 cents.

On a GAAP basis, the company generated earnings of 72 cents against a loss of $1.02 in the prior-year quarter.

Total Revenues

FirstEnergy generated total revenues of $2,963 million in the third quarter, which beat the Zacks Consensus Estimate of $2,854 million by 3.8%. The figure declined 3.3% from $3,064 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

Higher operating expenses and depreciation, absence of the Ohio Distribution Modernization Rider as well as more moderate summer hurt Regulated Distribution business.

Total distribution deliveries fell 2.2% in the third quarter on a year-over-year basis. Residential sales declined 2.2% year over year. Commercial and industrial sales dipped 3.8% and 1% year over year, respectively.

Higher rate base resulting from ongoing investments in the company's Energizing the Future initiative as well as a lower tax rate boosted Regulated Transmission business earnings in the quarter under review.

Financial Update

FirstEnergy's cash and cash equivalents as of Sep 30, 2019 were $716 million, up from $367 million as of Dec 31, 2018.

Long-term debt and other long-term obligations as of Sep 30 were $19,422 million compared with $17,751 million as of Dec 31, 2018.

Net cash provided from operating activities in the first nine months of 2019 was $1,737 million against $558 million cash provided in the year-ago period.

Guidance

Previously, the company expected 2019 earnings per share (EPS) in the range of $2.45-$2.75. Currently, it projects EPS in the range of $2.50-$2.60, whose mid-point of $2.55 is higher than the current Zacks Consensus Estimate of $2.49.

Also, the company issued 2020 earnings guidance in the range of $2.40-$2.60 per share.

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 Releases

NextEra Energy, Inc (NEE - Free Report) reported third-quarter 2019 adjusted earnings of $2.39 per share, which beat the Zacks Consensus Estimate of $2.27 by 5.3%.

Xcel Energy Inc (XEL - Free Report) posted third-quarter 2019 operating earnings of $1.01 per share, which lagged the Zacks Consensus Estimate of $1.05 by 3.8%.

American Electric Power Co., Inc (AEP - Free Report) reported third-quarter 2019 adjusted earnings of $1.46 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 12.3%.

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