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FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%. Also, the bottom line rose 10.5% from the year-ago quarter’s figure.
On a GAAP basis, the company’s earnings increased to 84 cents per share from 73 cents earned in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $3,022 million in the third quarter, which outpaced the Zacks Consensus Estimate of $2,905.3 million by 4%. Also, the top line moved up 2% from $2,963 million in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
Residential sales increased 5.1% on a year-over-year basis. Commercial deliveries declined 5.5% and industrial sales fell 6.3% year over year. Total distribution deliveries dipped 1.7% from the prior-year quarter’s level due to the ongoing pandemic’s impact on commercial and industrial sales.
Total operating expenses in the quarter under review came in at $2,301 million, up 0.8% from $2,282 million in the prior-year quarter.
In the third quarter, operating income was $721 million, up 5.9% from $681 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $296 million as of Sep 30, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Sep 30, 2020 were $22,203 million, up from $19,618 million on Dec 31, 2019.
Net cash provided byoperating activities in the first nine months of 2020 was $851 million compared with $1,737 million in first nine months of 2019.
Guidance
Management reaffirmed its 2020 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate being $2.53. Also, the company expects operating EPS to witness a CAGR of 5-7% during the 2018-2023 time period.
Pinnacle West Capital Corporation’s (PNW - Free Report) adjusted earnings per share of $3.07 in the third quarter of 2020 beat the Zacks Consensus Estimate of $2.98 by 3%.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.
NiSource Inc (NI - Free Report) delivered net operating earnings of 9 cents per share in third-quarter 2020, which surpassed the Zacks Consensus Estimate of 2 cents by 85.7%.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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FirstEnergy's (FE) Q3 Earnings & Revenues Beat Estimates
FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%. Also, the bottom line rose 10.5% from the year-ago quarter’s figure.
On a GAAP basis, the company’s earnings increased to 84 cents per share from 73 cents earned in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $3,022 million in the third quarter, which outpaced the Zacks Consensus Estimate of $2,905.3 million by 4%. Also, the top line moved up 2% from $2,963 million in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote
Highlights of the Release
Residential sales increased 5.1% on a year-over-year basis. Commercial deliveries declined 5.5% and industrial sales fell 6.3% year over year. Total distribution deliveries dipped 1.7% from the prior-year quarter’s level due to the ongoing pandemic’s impact on commercial and industrial sales.
Total operating expenses in the quarter under review came in at $2,301 million, up 0.8% from $2,282 million in the prior-year quarter.
In the third quarter, operating income was $721 million, up 5.9% from $681 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $296 million as of Sep 30, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Sep 30, 2020 were $22,203 million, up from $19,618 million on Dec 31, 2019.
Net cash provided byoperating activities in the first nine months of 2020 was $851 million compared with $1,737 million in first nine months of 2019.
Guidance
Management reaffirmed its 2020 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate being $2.53. Also, the company expects operating EPS to witness a CAGR of 5-7% during the 2018-2023 time period.
Zacks Rank
FirstEnergy currently 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
Pinnacle West Capital Corporation’s (PNW - Free Report) adjusted earnings per share of $3.07 in the third quarter of 2020 beat the Zacks Consensus Estimate of $2.98 by 3%.
Xcel Energy Inc. (XEL - Free Report) posted third-quarter 2020 operating earnings of $1.14 per share, surpassing the Zacks Consensus Estimate of $1.08 by 5.6%.
NiSource Inc (NI - Free Report) delivered net operating earnings of 9 cents per share in third-quarter 2020, which surpassed the Zacks Consensus Estimate of 2 cents by 85.7%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>