FirstEnergy (FE) Q3 Earnings Beat Estimates, Revenues Lag
FirstEnergy Corporation FE reported third-quarter 2023 operating earnings per share (EPS) of 88 cents, which surpassed the Zacks Consensus Estimate of 85 cents by 3.5%. The bottom line increased 11.4% from the year-ago quarter’s 79 cents.
The company reported GAAP earnings of 73 cents per share, 27.6% higher than the prior-year quarter.
Total Revenues
FirstEnergy generated operating revenues of $3,487 million in the third quarter, which missed the Zacks Consensus Estimate of $3,633 million by 4%. The top line improved 0.3% from the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote
Highlights of the Release
Total operating expenses amounted to $2,821 million, down 5% from the prior quarter’s $2,970 million.
Operating income was up 31.9% from the prior-year quarter to $666 million. Interest expenses increased 16.5% to $289 million.
Segmental Performance
Regulated Distribution: Earnings from this segment were $3,034 million, up 0.4% from the prior-year quarter. The rise primarily resulted from increased sales to commercial and residential customers.
Regulated Transmission: Earnings from this segment were $509 million, up 1.2% from the prior-year quarter. The third-quarter results were driven by the company's ongoing Energizing the Future investment program.
Corporate/Other: Loss from this segment was $56 million compared with a loss of $51 million in the year-ago quarter.
Financial Update
As of Oct 23, 2023, FE reported available liquidity of $5.3 billion, including cash and cash equivalents of $106 million.
Long-term debt and other long-term obligations as of Sep 30, 2023, were $22.9 billion compared with $21.2 billion as of Dec 31, 2022.
Net cash provided from operating activities in the first nine months of 2023 was $429 million compared with $1,837 million cash provided in the year-ago period.
Guidance
FirstEnergy narrowed 2023 earnings guidance to $2.49-$2.59 per share, based on 573 million shares outstanding, from its previous view of $2.44 to $2.64. The Zacks Consensus Estimate for earnings stands at $2.53 per share, slightly lower than $2.54, the midpoint of the company’s guided range. It also provided fourth-quarter total earnings guidance of $315-$375 million, or 55-65 cents per share, based on 574 million shares outstanding.
The company reaffirmed its long-term annual operating EPS growth rate of 6-8%. The company also raised its 2023 capital investment plan to $3.7 billion from the initial target of $3.4 billion.
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
CenterPoint Energy Inc. CNP reported third-quarter 2023 adjusted earnings of 40 cents per share, which beat the Zacks Consensus Estimate of 37 cents by 8.1%.
The Zacks Consensus Estimate for CNP’s 2023 earnings stands at $1.50 per share, implying a year-over-year improvement of 8.7%.
NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%.
The Zacks Consensus Estimate for NEE’s 2023 earnings stands at $3.12 per share, implying a year-over-year improvement of 7.6%.
CMS Energy Corp. CMS reported third-quarter 2023 adjusted earnings of 61 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 3.2%.
The Zacks Consensus Estimate for CMS’ 2023 earnings stands at $3.10 per share, implying a year-over-year improvement of 7.3%.
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