FirstEnergy Corporation (FE - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 47 cents, which surpassed the Zacks Consensus Estimate of 46 cents by 2.17%. The bottom line decreased 11.3% from the year-ago quarter’s figure.
The company reported GAAP earnings of 41 cents per share, 24.2% higher than the prior-year quarter’s EPS.
Total Revenues
FirstEnergy generated operating revenues of $3,006 million in the second quarter, which surpassed the Zacks Consensus Estimate of $2,894 million by 3.9%. The top line improved 6.7% from the year-ago quarter.
Highlights of the Release
Total operating expenses amounted to $2,525 million, down 3.8% from the prior quarter’s $2,624 million.
Operating income was up 7.6% from the prior-year quarter to $481 million. Interest expenses increased 4.2% to $276 million.
Segmental Performance
Regulated Distribution: Earnings from this segment were $2,542 million, up 4.8% from the prior-year quarter. The increase primarily resulted from utility investment programs and lower operating expenses.
Regulated Transmission: Earnings from this segment were $520 million, up 17.9% from the prior-year quarter. The second-quarter results were driven by the company's ongoing Energizing the Future investment program.
Corporate/Other: Earnings from this segment were essentially flat year over year.
Financial Update
As of Jul 31, 2023, FE reported available liquidity of approximately $4 billion, including cash and cash equivalents of $105 million.
Long-term debt and other long-term obligations as of Jun 30, 2023, were $22.7 billion compared with $21.2 billion as of Dec 31, 2022.
Net cash used for operating activities in the first six months of 2023 was $213 million against $1,283 million cash provided in the year-ago period.
Guidance
FirstEnergy reaffirmed 2023 earnings guidance in the range of $2.44-$2.64 per share, based on 574 million shares outstanding. The Zacks Consensus Estimate for earnings stands at $2.53 per share, slightly lower than $2.54, the midpoint of the company’s guided range. It also provided third-quarter total earnings guidance of $455-$515 million, or 80-90 cents per share, based on 573 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%.
Zacks Rank
FirstEnergy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Edison International (EIX - Free Report) reported second-quarter 2023 adjusted earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 93 cents by 8.6%.
The Zacks Consensus Estimate for EIX’s 2023 earnings stands at $4.72 per share, implying a year-over-year improvement of 2.2%.
NextEra Energy, Inc. (NEE - Free Report) released second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%.
The Zacks Consensus Estimate for NEE’s 2023 earnings stands at $3.11 per share, implying a year-over-year improvement of 7.2%.
Xcel Energy Inc. (XEL - Free Report) reported second-quarter 2023 operating earnings of 52 cents per share, which missed the Zacks Consensus Estimate of 55 cents by 5.5%.
The Zacks Consensus Estimate for XEL’s 2023 earnings stands at $3.34 per share, implying a year-over-year improvement of 5.4%.
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FirstEnergy Corporation (FE - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 47 cents, which surpassed the Zacks Consensus Estimate of 46 cents by 2.17%. The bottom line decreased 11.3% from the year-ago quarter’s figure.
The company reported GAAP earnings of 41 cents per share, 24.2% higher than the prior-year quarter’s EPS.
Total Revenues
FirstEnergy generated operating revenues of $3,006 million in the second quarter, which surpassed the Zacks Consensus Estimate of $2,894 million by 3.9%. The top line improved 6.7% from the year-ago quarter.
Highlights of the Release
Total operating expenses amounted to $2,525 million, down 3.8% from the prior quarter’s $2,624 million.
Operating income was up 7.6% from the prior-year quarter to $481 million. Interest expenses increased 4.2% to $276 million.
Segmental Performance
Regulated Distribution: Earnings from this segment were $2,542 million, up 4.8% from the prior-year quarter. The increase primarily resulted from utility investment programs and lower operating expenses.
Regulated Transmission: Earnings from this segment were $520 million, up 17.9% from the prior-year quarter. The second-quarter results were driven by the company's ongoing Energizing the Future investment program.
Corporate/Other: Earnings from this segment were essentially flat year over year.
Financial Update
As of Jul 31, 2023, FE reported available liquidity of approximately $4 billion, including cash and cash equivalents of $105 million.
Long-term debt and other long-term obligations as of Jun 30, 2023, were $22.7 billion compared with $21.2 billion as of Dec 31, 2022.
Net cash used for operating activities in the first six months of 2023 was $213 million against $1,283 million cash provided in the year-ago period.
Guidance
FirstEnergy reaffirmed 2023 earnings guidance in the range of $2.44-$2.64 per share, based on 574 million shares outstanding. The Zacks Consensus Estimate for earnings stands at $2.53 per share, slightly lower than $2.54, the midpoint of the company’s guided range. It also provided third-quarter total earnings guidance of $455-$515 million, or 80-90 cents per share, based on 573 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%.
Zacks Rank
FirstEnergy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Edison International (EIX - Free Report) reported second-quarter 2023 adjusted earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 93 cents by 8.6%.
The Zacks Consensus Estimate for EIX’s 2023 earnings stands at $4.72 per share, implying a year-over-year improvement of 2.2%.
NextEra Energy, Inc. (NEE - Free Report) released second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%.
The Zacks Consensus Estimate for NEE’s 2023 earnings stands at $3.11 per share, implying a year-over-year improvement of 7.2%.
Xcel Energy Inc. (XEL - Free Report) reported second-quarter 2023 operating earnings of 52 cents per share, which missed the Zacks Consensus Estimate of 55 cents by 5.5%.
The Zacks Consensus Estimate for XEL’s 2023 earnings stands at $3.34 per share, implying a year-over-year improvement of 5.4%.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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