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FirstEnergy's (FE) Q4 Earnings & Revenues Lag Estimates
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FirstEnergy Corporation (FE - Free Report) delivered fourth-quarter 2020 operating earnings of 32 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 36%. Also, the bottom line declined 41.8% from the year-ago quarter’s figure.
On a GAAP basis, the company delivered earnings of 45 cents per share against the loss of 20 cents incurred in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $2.5 billion in the fourth quarter, which missed the Zacks Consensus Estimate of $2.8 billion by 10.7%. Also, the top line moved down 7.4% from $2.7 billion in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
Residential sales increased marginally on a year-over-year basis. Commercial deliveries dipped 5.4% while industrial sales fell 5.1% year over year. Total distribution deliveries slipped 3.1% 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 $2,143 million, up 4.1% from $2,058 million in the prior-year quarter.
In the fourth quarter, operating income was $394 million, down 35.9% from $615 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $1,801 million as of Dec 31, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Dec 31, 2020 were $22,131 million, up from $19,618 million on Dec 31, 2019.
Net cash provided by operating activities in 2020 was $1,423 million compared with $2,467 million in 2019.
Guidance
Management expected the company’s 2021 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate pegged at $2.61. Also, the company expects first-quarter 2021 EPS in the range of 62-72 cents with the current Zacks Consensus Estimate pegged at 69 cents. It anticipates investing $3 billion in the ongoing year.
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, inline with the Zacks Consensus Estimate.
WEC Energy Group (WEC - Free Report) delivered fourth-quarter 2020 earnings per share of 76 cents, which surpassed the Zacks Consensus Estimate of 74 cents by 2.7%.
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FirstEnergy's (FE) Q4 Earnings & Revenues Lag Estimates
FirstEnergy Corporation (FE - Free Report) delivered fourth-quarter 2020 operating earnings of 32 cents per share, which missed the Zacks Consensus Estimate of 50 cents by 36%. Also, the bottom line declined 41.8% from the year-ago quarter’s figure.
On a GAAP basis, the company delivered earnings of 45 cents per share against the loss of 20 cents incurred in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $2.5 billion in the fourth quarter, which missed the Zacks Consensus Estimate of $2.8 billion by 10.7%. Also, the top line moved down 7.4% from $2.7 billion 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 marginally on a year-over-year basis. Commercial deliveries dipped 5.4% while industrial sales fell 5.1% year over year. Total distribution deliveries slipped 3.1% 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 $2,143 million, up 4.1% from $2,058 million in the prior-year quarter.
In the fourth quarter, operating income was $394 million, down 35.9% from $615 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $1,801 million as of Dec 31, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Dec 31, 2020 were $22,131 million, up from $19,618 million on Dec 31, 2019.
Net cash provided by operating activities in 2020 was $1,423 million compared with $2,467 million in 2019.
Guidance
Management expected the company’s 2021 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate pegged at $2.61. Also, the company expects first-quarter 2021 EPS in the range of 62-72 cents with the current Zacks Consensus Estimate pegged at 69 cents. It anticipates investing $3 billion in the ongoing year.
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
NextEra Energy, Inc. (NEE - Free Report) reported fourth-quarter 2020 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 39 cents by 2.6%.
Xcel Energy Inc. (XEL - Free Report) posted fourth-quarter 2020 operating earnings of 54 cents per share, inline with the Zacks Consensus Estimate.
WEC Energy Group (WEC - Free Report) delivered fourth-quarter 2020 earnings per share of 76 cents, which surpassed the Zacks Consensus Estimate of 74 cents by 2.7%.
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.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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