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FirstEnergy's (FE) Q3 Earnings & Revenues Beat Estimates

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  • FE

FirstEnergy Corporation FE delivered third-quarter 2021 operating earnings of 82 cents per share, surpassing the Zacks Consensus Estimate of 81 cents by 1.2%. The bottom line, however, declined 2.4% from the year-ago quarter’s figure.

On a GAAP basis, the company reported earnings of 85 cents per share compared with 84 cents in the prior-year quarter.

Total Revenues

FirstEnergy generated revenues of $3,124 million in the third quarter, which outpaced the Zacks Consensus Estimate of $3,109 million by 0.5%. Also, the top line improved 3.4% from $3,022 million in the year-ago quarter.

FirstEnergy Corporation Price, Consensus and EPS Surprise

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 decreased 2.7% on a year-over-year basis due to lower weather-related demand. Commercial deliveries increased 2% while industrial sales improved 3.4% year over year, courtesy of a continued recovery from the pandemic and recessionary conditions. Total distribution deliveries inched up 0.5% from the prior-year quarter’s level.

Total operating expenses in the quarter under review came in at $2,493 million, up 8.3% from $2,301 million in the prior-year quarter.

In the third quarter, operating income was $631 million, down 12.5% from $721 million in the year-ago quarter.

Financial Update

FirstEnergy had cash, cash equivalents and restricted cash worth $684 million as of Sep 30, 2021 compared with $1,801 million on Dec 31, 2020.

Long-term debt and other long-term obligations as of Sep 30, 2021 were $22,503 million, up from $22,131 million on Dec 31, 2020.

Net cash provided by operating activities in the first nine months of 2021 was $2,104 million compared with $851 million in the comparable period a year ago.

Guidance

Management raised the company’s 2021 earnings per share outlook to the range of $2.55-$2.65 from $2.40-$2.60 while the current Zacks Consensus Estimate is pegged at $2.57. It expects to invest up to $2.9 billion in the ongoing year.

Zacks Rank

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

Peer Releases

NextEra Energy, Inc. NEE reported third-quarter 2021 adjusted earnings of 75 cents per share, which beat the Zacks Consensus Estimate of 72 cents by 4.2%.

Avangrid, Inc. AGR reported third-quarter 2021 earnings of 34 cents per share, beating the Zacks Consensus Estimate of 30 cents by 13.3%.

DTE Energy Company DTE reported a third-quarter 2021 operating EPS of $1.72, which missed the Zacks Consensus Estimate of $1.83 by 6%.


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