Yahoo Finance FirstEnergy's (FE) Q1 Earnings Lag Estimates, Revenues Beat
FirstEnergy Corporation FE delivered first-quarter 2023 operating earnings per share (EPS) of 60 cents, which missed the Zacks Consensus Estimate of 61 cents by 1.64%. The bottom line was on par with the year-ago quarter’s figure.
The company reported GAAP earnings of 51 cents per share, on par with the prior-year quarter EPS.
Total Revenues
FirstEnergy generated operating revenues of $3,238 million in the first quarter, which surpassed the Zacks Consensus Estimate of $3,174 million by 2%. The top line improved 8.3% from the year-ago quarter’s tally.
FirstEnergy Corporation Price, Consensus and EPS Surprise
FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote
Highlights of the Release
Electric sales improved 8.3% from the prior-year period, primarily due to improved sales to industrial and commercial customers.
Total operating expenses amounted to $2,624 million, up 8.7% from the year-ago quarter’s $2,413 million.
Financial Update
As of Apr 24, 2023, FE reported a strong balance sheet with available liquidity of approximately $3.9 billion, including cash and cash equivalents of $130 million.
Long-term debt and other long-term obligations as of Mar 31, 2023, were $22.1 billion compared with $21.2 billion as of Dec 31, 2022.
Net cash used for operating activities was $112 million against $355 million cash provided in the year-ago quarter.
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 $2.51 per share, lower than $2.54 per share midpoint of the guided range. It also provided second-quarter total earnings guidance in the range of $230-$285 million, or 40-50 cents per share, based on 573 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%. It also reiterated the FFO/debt target of 14-15%.
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.
Upcoming Releases
Eversource Energy ES is set to release first-quarter 2023 results on May 3, after market close. The Zacks Consensus Estimate for earnings is pegged at $1.36 per share, implying a year-over-year increase of 4.62%.
Eversource Energy’s long-term (three- to five-year) earnings growth rate is projected at 6.34%. The consensus estimate for 2023 EPS stands at $4.36, indicating a year-over-year improvement of 6.6%.
Exelon Corporation EXC is slated to report first-quarter results on May 3, before market open. The Zacks Consensus Estimate for earnings is pegged at 66 cents per share, implying a year-over-year increase of 3.13%.
EXC’s long-term earnings growth rate is currently pinned at 6.68%. The consensus estimate for 2023 EPS stands at $2.35, indicating a year-over-year improvement of 3.52%.
Duke Energy DUK is scheduled to report first-quarter results on May 9, before market open. The Zacks Consensus Estimate for earnings is pegged at $1.31 per share, indicating a year-over-year increase of 0.77%.
DUK’s long-term earnings growth rate is currently pinned at 6.18%. The consensus mark for 2023 EPS stands at $5.61, implying a year-over-year improvement of 6.45%.
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