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FirstEnergy's (FE) Q1 Earnings Beat, Revenues Lag Estimates

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FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2021 operating earnings of 69 cents per share, which beat the Zacks Consensus Estimate of 68 cents by 1.5%. Also, the bottom line improved 4.5% from the year-ago quarter’s figure.

On a GAAP basis, the company reported earnings of 62 cents per share compared with 14 cents in the prior-year quarter.

Total Revenues

FirstEnergy generated revenues of $2,726 million in the first quarter, which missed the Zacks Consensus Estimate of $2,895 million by 5.8%. However, the top line inched up 0.6% from $2,709 million in the year-ago quarter.

FirstEnergy Corporation Price, Consensus and EPS Surprise FirstEnergy Corporation Price, Consensus and EPS Surprise

FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote

Highlights of the Release

Residential sales increased 12.8% on a year-over-year basis. Commercial deliveries dipped 3% while industrial sales fell 2.1% year over year. Total distribution deliveries climbed 3.2% from the prior-year quarter’s level primarily due to higher residential usage.

Total operating expenses in the quarter under review came in at $2,167 million, down 0.5% from $2,177 million in the prior-year quarter.

In the first quarter, operating income was $559 million, up 5.1% from $532 million in the year-ago quarter.

Financial Update

FirstEnergy had cash, cash equivalents and restricted cash worth $1,281 million as of Mar 31, 2021 compared with $1,734 million on Dec 31, 2020.

Long-term debt and other long-term obligations as of Mar 31, 2021 were $22,204 million, up from $22,131 million on Dec 31, 2020.

Net cash provided by operating activities in the first three months of 2021 was $533 million against net cash used for operating activities of $560 million in the comparable period a year ago.

Guidance

Management reaffirmed the company’s 2021 earnings per share (EPS) outlook in the range of $2.40-$2.60 while the current Zacks Consensus Estimate is pegged at $2.51. Also, the company expects second-quarter 2021 EPS in the band of 48-58 cents with the current Zacks Consensus Estimate pegged at 57 cents. 

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 Releases

American Electric Power Co., Inc. (AEP - Free Report) reported first-quarter 2021 adjusted earnings per share of $1.15, which missed the Zacks Consensus Estimate of $1.23 by 6.5%.

NextEra Energy, Inc. (NEE - Free Report) reported first-quarter 2021 adjusted earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%.

Upcoming Release

Xcel Energy (XEL - Free Report) is scheduled to announce first-quarter 2021 results on Apr 29. The Zacks Consensus Estimate for earnings per share is pegged at 61 cents.

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