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FirstEnergy's (FE) Q1 Earnings Miss Estimates, Sales Rise Y/Y

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FirstEnergy Corporation (FE - Free Report) delivered first-quarter 2022 operating earnings per share (EPS) of 60 cents, which missed the Zacks Consensus Estimate of 62 cents by 3.2%. However, the bottom line declined by 13% from the year-ago earnings of 69 cents per share.

On a GAAP basis, FirstEnergy reported first-quarter 2022 earnings of 51 cents per share, down 18% from the prior-year quarter’s 62 cents.

Total Revenues

FirstEnergy generated operating revenues of $2,991 million in the first quarter, which surpassed the Zacks Consensus Estimate of $2,782 million by 7.5%. The top line improved by 8.7% from $2,752 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

In the first quarter of 2022, residential sales increased by 2.2% due to higher weather-related usage. Commercial deliveries increased by 7.6%, while industrial sales improved by 2.5% year over year due to the higher demand from commercial and industrial customers. Total distribution deliveries moved up 3.6% from the prior-year quarter’s level.

Total operating expenses for the first quarter amounted to $2,413 million, up 12.6% from the year-ago quarter’s $2,143 million, due to the higher purchased power cost and an increase in general taxes.

In the first quarter, operating income was $578 million, down 5.1% from $609 million in the year-ago quarter.

Financial Update

FirstEnergy had cash, cash equivalents and restricted cash worth $310 million as of Mar 31, 2022 compared with $1,511 million on Dec 31, 2021.

Long-term debt and other long-term obligations as of Mar 31, 2022 were $21,754 million, down 2.2% from $22,248 million on Dec 31, 2021.

Net cash provided by operating activities as of Mar 31, 2022 was $355 million compared with $533 million in the year-ago quarter.

Guidance

FirstEnergy provided the second-quarter 2022 earnings guidance in the range of 46-56 cents per share. FE reiterated the 2022 earnings guidance in the range of $2.30-$2.50 per share. The Zacks Consensus Estimate for 2022 earnings of $2.43 per share is higher than $2.40, the midpoint of the guided range.

FirstEnergy plans to invest $3.3 billion in 2022, up 15% compared with 2021, to strengthen the grid and lead clean energy transition. FE expects to invest $17 billion in the 2021-2025 period, of which $8.6 billion will be directed toward grid modernization and increasing resiliency, $1.7 billion for conservation & $6.5 billion for clean energy transition and customer-centric growth projects.

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.

Upcoming Releases

PNM Resources (PNM - Free Report) is slated to report first-quarter 2022 earnings on Apr 28 before market open. The Zacks Consensus Estimate for the first quarter’s EPS is pegged at 45 cents.

PNM Resources’ long-term (three to five years) earnings growth is currently pegged at 4.4%. The Zacks Consensus Estimate for PNM’s 2022 earnings implies year-over-year growth of 4.1%.

XEL Energy (XEL - Free Report) is slated to report first-quarter 2022 earnings on Apr 28 before market open. The Zacks Consensus Estimate for the first quarter’s EPS is pegged at 69 cents.

XEL Energy’s long-term earnings growth is currently pegged at 6.4%. The Zacks Consensus Estimate for XEL’s 2022 earnings implies year-over-year growth of 7.4%.

Alliant Energy Corporation (LNT - Free Report) is slated to report first-quarter 2022 earnings on Apr 28 after market close. The Zacks Consensus Estimate for the first quarter’s EPS is pegged at 71 cents.

Alliant Energy’s long-term earnings growth is currently pegged at 6%. The Zacks Consensus Estimate for LNT’s 2022 earnings implies year-over-year growth of 4.2%.