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FirstEnergy (FE) Q4 Earnings Beat Estimates, Revenues Miss

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FirstEnergy Corporation (FE - Free Report) delivered fourth-quarter 2019 operating earnings of 55 cents per share, which beat the Zacks Consensus Estimate of 48 cents by 14.6%. Quarterly earnings increased 10% year over year.

On a GAAP basis, the company incurred a loss of 20 cents against earnings of 25 cents in the prior-year quarter.

In 2019, FirstEnergy delivered earnings of $2.58, down from $2.59 in 2018. The actual results in at the top end of the expected guidance range of $2.50 - $2.60 per share.

Total Revenues

FirstEnergy generated total revenues of $2,673 million in fourth-quarter 2019, which missed the Zacks Consensus Estimate of $2,745 million by 2.6%. The figure declined from $2,710 million in the year-ago quarter.

In 2019, FirstEnergy generated revenues of $11,035 million, down from $11,261 million a year ago.

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

Residential sales fell 3.1% on a year-over-year basis. Commercial deliveries declined 4.3% and industrial sales fell 2.4% year over year. Total distribution deliveries declined 3.2% from prior-year quarter’s levels due to milder-than-expected temperatures as well as lower commercial and industrial usage.

In the reported quarter Heating-degree-days were down 7% year over year.

Total operating expenses in the quarter under review amounted to $ 2,058 million, down from $2,198 million in the prior-year quarter.

In the fourth quarter, operating income was $ 615 million, up from $512 million in the year-ago quarter.

Guidance

Management guided 2020 earnings per share in the range of $2.40-$2.60, whose mid-point of $2.50 is higher than the current Zacks Consensus Estimate for the period of $2.49. Also, the company provided first-quarter earnings guidance in the range of 60-70 cents, whose mid-point of 65 cents is higher than the current Zacks Consensus Estimate for the quarter of 63 cents.

Zacks Rank

FirstEnergy carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Other Utility Releases

Xcel Energy (XEL - Free Report) posted fourth-quarter 2019 operating earnings of 56 cents per share, which beat the Zacks Consensus Estimate of 53 cents by 5.6%.

NextEra Energy (NEE - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.44 per share, which lagged the Zacks Consensus Estimate of $1.54 by 6.5%.

CMS Energy Corp. (CMS - Free Report) reported fourth-quarter 2019 adjusted earnings of 68 cents, which missed the Zacks Consensus Estimate of 69 cents.

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