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FirstEnergy (FE) Q4 Earnings Surpass Estimates, Revenues Lag

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FirstEnergy (FE - Free Report) reported fourth-quarter 2023 operating earnings of 62 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents by 3.3%. The bottom line increased 24% from the year-ago quarter’s figure of 50 cents.

FE reported earnings of $2.56 for 2023 compared with $2.41 per share in 2022, which reflects a year-over-year increase of 6.2%.

Total Revenues

Operating revenues of $3.15 billion missed the Zacks Consensus Estimate of $3.29 billion by 4.2%. The top line also declined by 0.9% from $3.18 billion recorded in the year-ago quarter.

FE reported total revenues of $12.87 billion for 2023 compared with $12.46 billion in 2022, which reflects a year-over-year increase of 3.3%.

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

Segmental Performance

Regulated Distribution: Earnings from this segment were $2.64 billion, down 4.3% from the prior-year quarter. The fall was primarily due to decreased sales to commercial and residential customers.

Regulated Transmission: Earnings from this segment were $564 million, up 19.7% from the prior-year quarter. The fourth-quarter results were driven by the company's ongoing investment program.

Corporate/Other: The loss from this segment was $54 million compared with a loss of $57 million in the year-ago quarter.

Highlights of the Release

Total operating expenses were $2.58 billion, down 7.2% from the year-ago quarter’s level of $2.78 billion due to the lower cost of sales.

Operating income totaled $568 million, up 42.4% from the year-ago quarter’s recorded number of $399 million.

The company incurred an interest expense of $296 million, up 17.9% from the prior-year quarter’s level of $251 million.

Financial Highlights

As of Feb 5, 2024, FE reported available liquidity of $4.6 billion, including cash and cash equivalents of $118 million.

Net cash provided from operating activities for the year 2023 was $1.39 billion compared with $2.68 billion cash provided in 2022.

Guidance

FirstEnergy expects its 2024 earnings per share guidance in the range of $2.61-$2.81, which indicates a 7% increase over the 2023 guidance midpoint, driven by robust regulated growth. The Zacks Consensus Estimate is pegged at $2.68 per share, lower than $2.71, the midpoint of the company’s guided range.

FirstEnergy reaffirmed its long-term annual operating EPS growth rate of 6-8%. FE now has a capital investment plan of $26 billion for the 2024-2028 time period.

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.

Recent Releases

Xcel Energy (XEL - Free Report) reported fourth-quarter 2023 adjusted earnings of 83 cents per share, which lagged the Zacks Consensus Estimate of 85 cents by 2.4%.

The Zacks Consensus Estimate for XEL’s 2024 earnings stands at $3.57 per share, implying a year-over-year improvement of 6.57%.

NextEra Energy (NEE - Free Report) released fourth-quarter 2023 adjusted earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 49 cents by 6.1%.

The Zacks Consensus Estimate for NEE’s 2024 earnings is pegged at $3.44 per share, implying a year-over-year improvement of 8.52%.

WEC Energy Group (WEC - Free Report) reported fourth-quarter 2023 adjusted earnings of $1.10 per share, which matched the Zacks Consensus Estimate.

The Zacks Consensus Estimate for WEC’s 2024 earnings stands at $4.89 per share, calling for a year-over-year improvement of 5.62%.

 

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