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Why Is FirstEnergy (FE) Up 4.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for FirstEnergy (FE - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FirstEnergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FirstEnergy’s Q1 Earnings Beat, Revenues Miss Estimates
FirstEnergy delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%. Quarterly earnings were in line with the year-ago quarter’s figure.
On a GAAP basis, the company generated earnings of 59 cents, down from earnings of $2.55 in the prior-year quarter.
Total Revenues
FirstEnergy generated total revenues of $2,883 million in first-quarter 2019, which missed the Zacks Consensus Estimate of $2,938 million by 1.88%. The figure improved from $2,862 million in the year-ago quarter.
Highlights of the Release
Total electric delivery dipped 0.2% in the first quarter on a year-over-year basis. Residential sales inched up 0.7% year over year. Commercial and industrial sales fell 1.7% and 0.1% year over year, respectively.
Residential sales improved on the back of higher number of customers and average customer usage, which was offset by state energy efficiency programs and lower weather-related customer usage. Deliveries to industrial customers declined due to lower steel and automotive customer usage.
Financial Update
FirstEnergy's cash and cash equivalents as of Mar 31, 2019, were $174 million, down from $367 million as of Dec 31, 2018.
Long-term debt and other long-term obligations as of Mar 31, 2019, were $18,814 million compared with $17,751 million as of Dec 31, 2018.
Net cash used in operating activities in first-quarter 2019 was $182 million compared with $880 million in the year-ago quarter.
Guidance
The company expects 2019 EPS in the range of $2.45-$2.75, whose mid-point of $2.60 is higher than the current Zacks Consensus Estimate for the period of $2.58. Also, the company provided second-quarter earnings guidance in the range of 55-65 cents.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, FirstEnergy has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
FirstEnergy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is FirstEnergy (FE) Up 4.4% Since Last Earnings Report?
A month has gone by since the last earnings report for FirstEnergy (FE - Free Report) . Shares have added about 4.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FirstEnergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
FirstEnergy’s Q1 Earnings Beat, Revenues Miss Estimates
FirstEnergy delivered first-quarter 2019 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 66 cents by 1.52%. Quarterly earnings were in line with the year-ago quarter’s figure.
On a GAAP basis, the company generated earnings of 59 cents, down from earnings of $2.55 in the prior-year quarter.
Total Revenues
FirstEnergy generated total revenues of $2,883 million in first-quarter 2019, which missed the Zacks Consensus Estimate of $2,938 million by 1.88%. The figure improved from $2,862 million in the year-ago quarter.
Highlights of the Release
Total electric delivery dipped 0.2% in the first quarter on a year-over-year basis. Residential sales inched up 0.7% year over year. Commercial and industrial sales fell 1.7% and 0.1% year over year, respectively.
Residential sales improved on the back of higher number of customers and average customer usage, which was offset by state energy efficiency programs and lower weather-related customer usage. Deliveries to industrial customers declined due to lower steel and automotive customer usage.
Financial Update
FirstEnergy's cash and cash equivalents as of Mar 31, 2019, were $174 million, down from $367 million as of Dec 31, 2018.
Long-term debt and other long-term obligations as of Mar 31, 2019, were $18,814 million compared with $17,751 million as of Dec 31, 2018.
Net cash used in operating activities in first-quarter 2019 was $182 million compared with $880 million in the year-ago quarter.
Guidance
The company expects 2019 EPS in the range of $2.45-$2.75, whose mid-point of $2.60 is higher than the current Zacks Consensus Estimate for the period of $2.58. Also, the company provided second-quarter earnings guidance in the range of 55-65 cents.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates flatlined during the past month.
VGM Scores
Currently, FirstEnergy has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
FirstEnergy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.