Diversified energy company, FirstEnergy Corporation (FE - Free Report) announced fourth-quarter 2016 operating earnings of 38 cents per share, missing the Zacks Consensus Estimate of 39 cents by 2.6%.Quarterly earnings were down 34.5% year over year.
On a GAAP basis, FirstEnergy reported aloss of $13.44 per share, much wider than the prior-year loss of 53 cents.
The variance between GAAP and operating earnings figure was due to actuarial assumptions of 21 cents, other charges of 3 cents, regulatory charges of 1 cent, merger accounting related costs of a penny, asset impairment charges of $13.54, debt redemption costs of 1 cent and trust securities impairment cost of 1 cent.
Full-year 2016 operating earnings came in at $2.63, missing the Zacks Consensus Estimate of $2.66 by 1.1%. Yearly earnings fell 3% year over year.
Full-year GAAP loss stood at $14.49 per share, compared to earnings of $1.37 in 2015.
Total Revenue
FirstEnergy generated total revenue of $3,375 million in the fourth quarter of 2016, missing the Zacks Consensus Estimate of $3,533 million by 4.5%. Reported revenues were also down 4.7% from $3,541 million reported a year ago.The top line declined due to lower revenues from Competitive Energy Services.
Full-year 2016 revenues came in at $14,562 million, missing the Zacks Consensus Estimate of $15,030 million by 3.1%. Yearly revenues fell 3.1% year over year.
Highlights of the Release
Total electric sales increased by 1,501 thousand megawatt-hours (MWh), or 4.4% year over year. Residential sales were up by 950 thousand MWh (8.1%), while commercial sales grew 341 thousand MWh (3.4%). Industrial sales improved by 215 thousand MWh (1.8%) primarily on account of higher usage in the shale, gas and coal sectors.
For the fourth quarter, FirstEnergy incurred operating expenses of $3,081 million, down 6.3% from $3,289 million a year ago primarily due to lower fuel and purchased power.
Operating income in the reported quarter stood at $294 million, up from $252 million in the prior-year quarter.
Financial Update
FirstEnergy's cash on hand as of Dec 31, 2016 was $199 million, up from $131 million as of Dec 31, 2015.
Cash from operating activities in the fourth quarter was $791 million, compared with $1,130 million a year ago.
Long-term debt and other long-term obligations as of Dec 31, 2016 were $18,192 million, compared with $19,099 million as of Dec 31, 2015.
Guidance
FirstEnergy has provided its operating earnings guidance for first quarter 2017 and full year in the range of 65 cents–75 cents and $2.70–$3.00, respectively.
Other Utility Releases
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.
WEC Energy Group (WEC - Free Report) reported fourth-quarter 2016 adjusted earnings of 61 cents per share, a penny lower than both the Zacks Consensus Estimate and the year-ago figure of 62 cents.
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.
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Diversified energy company, FirstEnergy Corporation (FE - Free Report) announced fourth-quarter 2016 operating earnings of 38 cents per share, missing the Zacks Consensus Estimate of 39 cents by 2.6%.Quarterly earnings were down 34.5% year over year.
On a GAAP basis, FirstEnergy reported aloss of $13.44 per share, much wider than the prior-year loss of 53 cents.
The variance between GAAP and operating earnings figure was due to actuarial assumptions of 21 cents, other charges of 3 cents, regulatory charges of 1 cent, merger accounting related costs of a penny, asset impairment charges of $13.54, debt redemption costs of 1 cent and trust securities impairment cost of 1 cent.
Full-year 2016 operating earnings came in at $2.63, missing the Zacks Consensus Estimate of $2.66 by 1.1%. Yearly earnings fell 3% year over year.
Full-year GAAP loss stood at $14.49 per share, compared to earnings of $1.37 in 2015.
Total Revenue
FirstEnergy generated total revenue of $3,375 million in the fourth quarter of 2016, missing the Zacks Consensus Estimate of $3,533 million by 4.5%. Reported revenues were also down 4.7% from $3,541 million reported a year ago.The top line declined due to lower revenues from Competitive Energy Services.
Full-year 2016 revenues came in at $14,562 million, missing the Zacks Consensus Estimate of $15,030 million by 3.1%. Yearly revenues fell 3.1% year over year.
Highlights of the Release
Total electric sales increased by 1,501 thousand megawatt-hours (MWh), or 4.4% year over year. Residential sales were up by 950 thousand MWh (8.1%), while commercial sales grew 341 thousand MWh (3.4%). Industrial sales improved by 215 thousand MWh (1.8%) primarily on account of higher usage in the shale, gas and coal sectors.
For the fourth quarter, FirstEnergy incurred operating expenses of $3,081 million, down 6.3% from $3,289 million a year ago primarily due to lower fuel and purchased power.
Operating income in the reported quarter stood at $294 million, up from $252 million in the prior-year quarter.
Financial Update
FirstEnergy's cash on hand as of Dec 31, 2016 was $199 million, up from $131 million as of Dec 31, 2015.
Cash from operating activities in the fourth quarter was $791 million, compared with $1,130 million a year ago.
Long-term debt and other long-term obligations as of Dec 31, 2016 were $18,192 million, compared with $19,099 million as of Dec 31, 2015.
Guidance
FirstEnergy has provided its operating earnings guidance for first quarter 2017 and full year in the range of 65 cents–75 cents and $2.70–$3.00, respectively.
Other Utility Releases
American Electric Power Co., Inc. (AEP - Free Report) reported fourth-quarter 2016 operating earnings of 67 cents per share, beating the Zacks Consensus Estimate of 55 cents by 21.8%.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2016 adjusted earnings of $1.21 per share, missing the Zacks Consensus Estimate of $1.29 by 6.2%. Reported earnings were, however, up 3.4% year over year.
WEC Energy Group (WEC - Free Report) reported fourth-quarter 2016 adjusted earnings of 61 cents per share, a penny lower than both the Zacks Consensus Estimate and the year-ago figure of 62 cents.
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.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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