FirstEnergy Corporation (FE - Free Report) delivered fourth-quarter 2022 operating earnings per share (EPS) of 50 cents, which missed the Zacks Consensus Estimate of 53 cents by 5.7%. The bottom line declined 2% from the year-ago quarter’s 51 cents per share.
On a GAAP basis, FirstEnergy reported fourth-quarter 2022 loss of 71 cents per share, down 192% from the year-ago quarter’s earnings of 77 cents.
Total Revenues
FirstEnergy generated operating revenues of $3,178 million in the fourth quarter, which surpassed the Zacks Consensus Estimate of $2,841 million by 11.9%. The top line improved 19.5% from the year-ago quarter’s tally.
Total revenues for 2022 totaled $12.52 billion, up 12.2% from the year-ago figure of $11.16 billion.
FirstEnergy Corporation Price, Consensus and EPS Surprise
Highlights of the Release
In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.5% from the prior-year period, primarily due to improved sales volumes to industrial and commercial customers.
Total operating expenses for the fourth-quarter amounted to $2,723 million, up 22.2% from the year-ago quarter’s $2,228 million.
In the fourth quarter, operating income was $455 million, up 5.3% from $432 million in the year-ago quarter.
Financial Update
As of Feb 10, 2023, FE reported a strong balance sheet with available liquidity of approximately $4.3 billion, including cash and cash equivalents of $225 million.
Long-term debt and other long-term obligations as of Dec 31, 2022 were $21.2 billion, compared with $22.3 billion as of Dec 31, 2021.
Net cash provided by operating activities for 2022 was $2.7 billion, compared with $2.8 billion in 2021.
Guidance
FirstEnergy provided its 2023 earnings guidance in the range of $2.44-$2.64 per share, based on 574 million shares outstanding. The Zacks Consensus Estimate for 2023 EPS is $2.47, lower than the midpoint of the guided range. In addition, the company provided a guidance range of 56 cents-66 cents per share for the first quarter of 2023, based on 573 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%. It also reaffirmed the FFO/debt target of 14-15%.
Zacks Rank
FirstEnergy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
American Electric Power (AEP - Free Report) is scheduled to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.02 per share, indicating a year-over-year increase of 4.08%.
AEP’s long-term (three to five years) earnings growth is currently pegged at 6.11%. The Zacks Consensus Estimate for 2023 EPS is $5.35, implying a year-over-year increase of 6.36%.
DTE Energy (DTE - Free Report) is scheduled to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.22 per share, indicating a year-over-year increase of 16.2%.
DTE’s long-term earnings growth is currently expected at 6%. The Zacks Consensus Estimate for 2023 EPS is $6.23, implying a year-over-year increase of 3.75%.
Essential Utilities (WTRG - Free Report) is scheduled to report fourth-quarter results on Feb 27, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 45 cents per share, indicating a year-over-year increase of 2.3%.
WTRG’s long-term earnings growth is currently pegged at 6%. The Zacks Consensus Estimate for 2023 EPS is $1.89, implying a year-over-year increase of 6.46%.
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FirstEnergy Corporation (FE - Free Report) delivered fourth-quarter 2022 operating earnings per share (EPS) of 50 cents, which missed the Zacks Consensus Estimate of 53 cents by 5.7%. The bottom line declined 2% from the year-ago quarter’s 51 cents per share.
On a GAAP basis, FirstEnergy reported fourth-quarter 2022 loss of 71 cents per share, down 192% from the year-ago quarter’s earnings of 77 cents.
Total Revenues
FirstEnergy generated operating revenues of $3,178 million in the fourth quarter, which surpassed the Zacks Consensus Estimate of $2,841 million by 11.9%. The top line improved 19.5% from the year-ago quarter’s tally.
Total revenues for 2022 totaled $12.52 billion, up 12.2% from the year-ago figure of $11.16 billion.
FirstEnergy Corporation Price, Consensus and EPS Surprise
Highlights of the Release
In the trailing twelve-month period, FirstEnergy’s electricity sales improved 1.5% from the prior-year period, primarily due to improved sales volumes to industrial and commercial customers.
Total operating expenses for the fourth-quarter amounted to $2,723 million, up 22.2% from the year-ago quarter’s $2,228 million.
In the fourth quarter, operating income was $455 million, up 5.3% from $432 million in the year-ago quarter.
Financial Update
As of Feb 10, 2023, FE reported a strong balance sheet with available liquidity of approximately $4.3 billion, including cash and cash equivalents of $225 million.
Long-term debt and other long-term obligations as of Dec 31, 2022 were $21.2 billion, compared with $22.3 billion as of Dec 31, 2021.
Net cash provided by operating activities for 2022 was $2.7 billion, compared with $2.8 billion in 2021.
Guidance
FirstEnergy provided its 2023 earnings guidance in the range of $2.44-$2.64 per share, based on 574 million shares outstanding. The Zacks Consensus Estimate for 2023 EPS is $2.47, lower than the midpoint of the guided range. In addition, the company provided a guidance range of 56 cents-66 cents per share for the first quarter of 2023, based on 573 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%. It also reaffirmed the FFO/debt target of 14-15%.
Zacks Rank
FirstEnergy currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
American Electric Power (AEP - Free Report) is scheduled to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.02 per share, indicating a year-over-year increase of 4.08%.
AEP’s long-term (three to five years) earnings growth is currently pegged at 6.11%. The Zacks Consensus Estimate for 2023 EPS is $5.35, implying a year-over-year increase of 6.36%.
DTE Energy (DTE - Free Report) is scheduled to report fourth-quarter results on Feb 23, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at $1.22 per share, indicating a year-over-year increase of 16.2%.
DTE’s long-term earnings growth is currently expected at 6%. The Zacks Consensus Estimate for 2023 EPS is $6.23, implying a year-over-year increase of 3.75%.
Essential Utilities (WTRG - Free Report) is scheduled to report fourth-quarter results on Feb 27, before market open. The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 45 cents per share, indicating a year-over-year increase of 2.3%.
WTRG’s long-term earnings growth is currently pegged at 6%. The Zacks Consensus Estimate for 2023 EPS is $1.89, implying a year-over-year increase of 6.46%.
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Zacks predicts another significant surge. Click below for Bitcoin: A Tumultuous Yet Resilient History.
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