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FirstEnergy's (FE) Q2 Earnings and Revenues Beat Estimates
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FirstEnergy Corporation (FE - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 47 cents, which surpassed the Zacks Consensus Estimate of 46 cents by 2.17%. The bottom line decreased 11.3% from the year-ago quarter’s figure.
The company reported GAAP earnings of 41 cents per share, 24.2% higher than the prior-year quarter’s EPS.
Total Revenues
FirstEnergy generated operating revenues of $3,006 million in the second quarter, which surpassed the Zacks Consensus Estimate of $2,894 million by 3.9%. The top line improved 6.7% from the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
Total operating expenses amounted to $2,525 million, down 3.8% from the prior quarter’s $2,624 million.
Operating income was up 7.6% from the prior-year quarter to $481 million. Interest expenses increased 4.2% to $276 million.
Segmental Performance
Regulated Distribution: Earnings from this segment were $2,542 million, up 4.8% from the prior-year quarter. The increase primarily resulted from utility investment programs and lower operating expenses.
Regulated Transmission: Earnings from this segment were $520 million, up 17.9% from the prior-year quarter. The second-quarter results were driven by the company's ongoing Energizing the Future investment program.
Corporate/Other: Earnings from this segment were essentially flat year over year.
Financial Update
As of Jul 31, 2023, FE reported available liquidity of approximately $4 billion, including cash and cash equivalents of $105 million.
Long-term debt and other long-term obligations as of Jun 30, 2023, were $22.7 billion compared with $21.2 billion as of Dec 31, 2022.
Net cash used for operating activities in the first six months of 2023 was $213 million against $1,283 million cash provided in the year-ago period.
Guidance
FirstEnergy reaffirmed 2023 earnings guidance in the range of $2.44-$2.64 per share, based on 574 million shares outstanding. The Zacks Consensus Estimate for earnings stands at $2.53 per share, slightly lower than $2.54, the midpoint of the company’s guided range. It also provided third-quarter total earnings guidance of $455-$515 million, or 80-90 cents per share, based on 573 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%.
Edison International (EIX - Free Report) reported second-quarter 2023 adjusted earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 93 cents by 8.6%.
The Zacks Consensus Estimate for EIX’s 2023 earnings stands at $4.72 per share, implying a year-over-year improvement of 2.2%.
NextEra Energy, Inc. (NEE - Free Report) released second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%.
The Zacks Consensus Estimate for NEE’s 2023 earnings stands at $3.11 per share, implying a year-over-year improvement of 7.2%.
Xcel Energy Inc. (XEL - Free Report) reported second-quarter 2023 operating earnings of 52 cents per share, which missed the Zacks Consensus Estimate of 55 cents by 5.5%.
The Zacks Consensus Estimate for XEL’s 2023 earnings stands at $3.34 per share, implying a year-over-year improvement of 5.4%.
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FirstEnergy's (FE) Q2 Earnings and Revenues Beat Estimates
FirstEnergy Corporation (FE - Free Report) reported second-quarter 2023 operating earnings per share (EPS) of 47 cents, which surpassed the Zacks Consensus Estimate of 46 cents by 2.17%. The bottom line decreased 11.3% from the year-ago quarter’s figure.
The company reported GAAP earnings of 41 cents per share, 24.2% higher than the prior-year quarter’s EPS.
Total Revenues
FirstEnergy generated operating revenues of $3,006 million in the second quarter, which surpassed the Zacks Consensus Estimate of $2,894 million by 3.9%. The top line improved 6.7% from 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
Total operating expenses amounted to $2,525 million, down 3.8% from the prior quarter’s $2,624 million.
Operating income was up 7.6% from the prior-year quarter to $481 million. Interest expenses increased 4.2% to $276 million.
Segmental Performance
Regulated Distribution: Earnings from this segment were $2,542 million, up 4.8% from the prior-year quarter. The increase primarily resulted from utility investment programs and lower operating expenses.
Regulated Transmission: Earnings from this segment were $520 million, up 17.9% from the prior-year quarter. The second-quarter results were driven by the company's ongoing Energizing the Future investment program.
Corporate/Other: Earnings from this segment were essentially flat year over year.
Financial Update
As of Jul 31, 2023, FE reported available liquidity of approximately $4 billion, including cash and cash equivalents of $105 million.
Long-term debt and other long-term obligations as of Jun 30, 2023, were $22.7 billion compared with $21.2 billion as of Dec 31, 2022.
Net cash used for operating activities in the first six months of 2023 was $213 million against $1,283 million cash provided in the year-ago period.
Guidance
FirstEnergy reaffirmed 2023 earnings guidance in the range of $2.44-$2.64 per share, based on 574 million shares outstanding. The Zacks Consensus Estimate for earnings stands at $2.53 per share, slightly lower than $2.54, the midpoint of the company’s guided range. It also provided third-quarter total earnings guidance of $455-$515 million, or 80-90 cents per share, based on 573 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%.
Zacks Rank
FirstEnergy currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
Edison International (EIX - Free Report) reported second-quarter 2023 adjusted earnings of $1.01 per share, which beat the Zacks Consensus Estimate of 93 cents by 8.6%.
The Zacks Consensus Estimate for EIX’s 2023 earnings stands at $4.72 per share, implying a year-over-year improvement of 2.2%.
NextEra Energy, Inc. (NEE - Free Report) released second-quarter 2023 adjusted earnings of 88 cents per share, which beat the Zacks Consensus Estimate of 83 cents by 6%.
The Zacks Consensus Estimate for NEE’s 2023 earnings stands at $3.11 per share, implying a year-over-year improvement of 7.2%.
Xcel Energy Inc. (XEL - Free Report) reported second-quarter 2023 operating earnings of 52 cents per share, which missed the Zacks Consensus Estimate of 55 cents by 5.5%.
The Zacks Consensus Estimate for XEL’s 2023 earnings stands at $3.34 per share, implying a year-over-year improvement of 5.4%.