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FirstEnergy's (FE) Q2 Earnings Match, Revenues Lag Estimates

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FirstEnergy Corporation (FE - Free Report) delivered second-quarter 2021 operating earnings of 59 cents per share, in line with the Zacks Consensus Estimate. The bottom line improved 3.5% from the year-ago quarter’s figure.

On a GAAP basis, the company reported earnings of 11 cents per share compared with 57 cents in the prior-year quarter.

Total Revenues

FirstEnergy generated revenues of $2,622 million in the second quarter, which missed the Zacks Consensus Estimate of $2,694 million by 2.7%. However, the top line improved 4% from $2,522 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 decreased 3.3% on a year-over-year basis. Commercial deliveries increased 9.8% and industrial sales improved 11.4% year over year. Total distribution deliveries climbed 5.3% from the prior-year quarter’s level.

Total operating expenses in the quarter under review came in at $2,310 million, up15.1% from $2,007 million in the prior-year quarter.

In the second quarter, operating income was $312 million, down 39.4% from $515 million in the year-ago quarter.

Financial Update

FirstEnergy had cash, cash equivalents and restricted cash worth $1,312 million as of Jun 30, 2021 compared with $1,801 million on Dec 31, 2020.

Long-term debt and other long-term obligations as of Jun 30, 2021 were $23,025 million, up from $22,131 million on Dec 31, 2020.

Net cash provided by operating activities in the first six months of 2021 was $1,347 million compared with $150 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 $2.54. The company’sthird-quarter 2021 EPS is projected in the band of 70-80 cents with the Zacks Consensus Estimate pegged at 79 cents. It expects to invest up to $2.9 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.

Upcoming Releases

Xcel Energy (XEL - Free Report) is scheduled to announce second-quarter 2021 results on Jul 29. The Zacks Consensus Estimate for earnings per share is pegged at 56 cents.

Pinnacle West Capital (PNW - Free Report) is scheduled to announce second-quarter 2021 results on Aug 5. The Zacks Consensus Estimate for earnings per share is pegged at $1.58.

NRG Energy, Inc. (NRG - Free Report) is scheduled to announce second-quarter 2021 results on Aug 5. The Zacks Consensus Estimate for earnings per share is pegged at $2.69.