FirstEnergy Corporation (FE - Free Report) reported first-quarter 2018 operating earnings of 67 cents per share, lagging the Zacks Consensus Estimate of 68 cents by 1.5%. Quarterly earnings improved 28.9% year over year to come in within the expected range of 60-70 cents.
On a GAAP basis, the company reported earnings of $2.54 per share compared with 46 cents in the prior-year quarter. The difference between GAAP and operating earnings in the reported quarter was due to the impact of one-time gain from the exit of competitive business.
FirstEnergy generated total revenues of $2,976 million in first-quarter 2018, missing the Zacks Consensus Estimate of $3,262 million by 8.8%.
Revenues moved up 4.2% from $2,855 million in the year-ago quarter. The top line improved primarily on the back of higher regulated transmission and distribution revenues.
Highlights of the Release
Total electric delivery increased 5% year over year to 38,740 thousand megawatt-hours (MWh). Residential sales rose 8.1%, while commercial and industrial sales rose 3.6% and 2.8% year over year, respectively.
Due to higher weather-related usage, distribution earnings in the reported quarter increased 6 cents from the year-ago quarter.
FirstEnergy's cash on hand as of Mar 31, 2018 was $248 million, down from $588 million as of Dec 31, 2017.
Long-term debt and other long-term obligations as of Dec 31 were $16,740 million compared with $18,186 million as of Dec 31, 2017.
Net cash (used)/provided from operating activities was ($880) million, compared with $785 million provided in the first quarter of 2017.
FirstEnergy reiterated its operating earnings guidance for 2018 in the range of $2.25-$2.55 per share. For the second quarter of 2018, earnings are estimated in the range of 47-57 cents.
Upcoming Peer Releases
NextEra Energy (NEE - Free Report) is likely to report first-quarter 2018 operating earnings on Apr 24, 2018. The Zacks Consensus Estimate is pegged at $1.75.
Dominion Energy (D - Free Report) is expected to report first-quarter 2018 operating earnings on Apr 27, 2018. The Zacks Consensus Estimate is pegged at $1.03.
Exelon Corporation (EXC - Free Report) is anticipated to report first-quarter 2018 operating earnings on May 2, 2018. The Zacks Consensus Estimate is pegged at 93 cents.
FirstEnergy has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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