FirstEnergy Corporation FE delivered second-quarter 2020 operating earnings of 57 cents per share, which beat the Zacks Consensus Estimate of 55 cents by 3.64%. Quarterly earnings, however, declined 6.56% from the year-ago quarter’s figure.
On a GAAP basis, the company’s earnings amounted to 57 cents per share compared with 58 cents earned in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $2,522 million in the second quarter, which missed the Zacks Consensus Estimate of $2,562 million by 1.56%. The figure, however, inched up 0.24% from $2,516 million in 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
Residential sales increased 17.1% on a year-over-year basis. Commercial deliveries declined 14.4% and industrial sales fell 11.7% year over year. Total distribution deliveries dipped 3.1% from the prior-year quarter’s level due to the ongoing pandemic impact on commercial and industrial sales.
Total operating expenses in the quarter under review came in at $2,007 million, up 3.9% from $1,931 million in the prior-year quarter.
In the second quarter, operating income was $515 million, down 12% from $585 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $165 million as of Jun 30, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Jun 30, 2020 were $21,980 million, up from $19,618 million on Dec 31, 2019.
Net cash provided from operating activities in the first half of 2020 was $150 million compared with $625 million in first-half 2019.
Guidance
Management reaffirmed 2020 earnings per share guidance in the range of $2.40-$2.60 with the mid-point being higher than the current Zacks Consensus Estimate of $2.46. Also, the company issued third-quarter earnings outlook in the 73-83 cents band with the current Zacks Consensus Estimate of 74 cents being slightly above the lower end.
Zacks Rank
FirstEnergy carries a Zacks Rank #4 (Sell), currently.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Fortis Inc. FTS is scheduled to announce second-quarter 2020 results on Jul 30. The Zacks Consensus Estimate for quarterly earnings per share is pegged at 41 cents.
Dominion Energy D is scheduled to report second-quarter 2020 results on Jul 31. The Zacks Consensus Estimate for quarterly earnings stands at 83 cents per share.
American Electric Power AEP is scheduled to announce second-quarter 2020 results on Aug 6. The Zacks Consensus Estimate for quarterly earnings per share is pegged at $1.02.
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