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Diversified energy company FirstEnergy Corporation (FE - Free Report) announced third-quarter 2016 operating earnings of 90 cents per share, higher than the Zacks Consensus Estimate of 76 cents by 18.4%.Quarterly earnings, however,fell 8.2% yearoveryear.
Meanwhile, on a GAAP basis, FirstEnergy reported earnings of 89 cents per share, compared to the prior-year earnings of 94 cents.
The variance between GAAP and operating earnings figure was due to regulatory charges of 2 cents, merger accounting related costs of a penny and mark-to-market adjustments gain of 2 cents.
FirstEnergy generated total revenue of $3,917 million, beating the Zacks Consensus Estimate of $3,828 million by 2.3%. However, reported revenues were down 5% from $4,123 million reported a year ago.
The top line declined due to lower revenues from Competitive Energy Services.
Highlights of the Release
Total electric sales increased by 2,675 thousand megawatt-hours (MWh), or 6.9% year over year. Residential sales were up by 1,833 thousand MWh (12.8%), while commercial sales grew by 542 thousand MWh (4.7%). The increase was attributable to the impact of above-average temperatures in the company’s service territories. Industrial sales improved by 302 thousand MWh (2.4%) primarily on account of higher usage in the shale, gas and coal sectors.
For the third quarter, FirstEnergy incurred operating expenses of $3,056 million, down 5% from $3,215 million a year ago primarily due to lower fuel and purchased power.
Operating income in the reported quarter stood at $861 million, down 5.2% from $908 million in the prior-year quarter.
FirstEnergy's cash on hand as of Sep 30, 2016 was $551 million, up from $131 million as of Dec 31, 2015.
Cash from operating activities in the third quarter was $1,120 million, compared with $1,327 million a year ago.
Long-term debt and other long-term obligations as of Sep 30, 2016 were $18,532 million, compared with $19,099 million as of Dec 31, 2015.
Guidance
FirstEnergy has raised its operating earnings guidance for 2016 to the range of $2.60-$2.70from its previous expectations of $2.40–$2.60.
Other Utility Releases
NextEra Energy, Inc. (NEE - Free Report) announced third-quarter 2016 adjusted earnings of $1.74 per share, outpacing the Zacks Consensus Estimate of $1.65 by 5.5%.
WEC Energy Group (WEC - Free Report) reported third-quarter 2016 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 60 cents by 15%.
Xcel Energy Inc. (XEL - Free Report) recorded third-quarter operating earnings of 90 cents per share, outpacing the Zacks Consensus Estimate of 87 cents by 3.5%.
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FirstEnergy (FE) Beats Q3 Earnings Estimates, Raises View
Diversified energy company FirstEnergy Corporation (FE - Free Report) announced third-quarter 2016 operating earnings of 90 cents per share, higher than the Zacks Consensus Estimate of 76 cents by 18.4%.Quarterly earnings, however,fell 8.2% yearoveryear.
Meanwhile, on a GAAP basis, FirstEnergy reported earnings of 89 cents per share, compared to the prior-year earnings of 94 cents.
The variance between GAAP and operating earnings figure was due to regulatory charges of 2 cents, merger accounting related costs of a penny and mark-to-market adjustments gain of 2 cents.
Total Revenue
FirstEnergy generated total revenue of $3,917 million, beating the Zacks Consensus Estimate of $3,828 million by 2.3%. However, reported revenues were down 5% from $4,123 million reported a year ago.
The top line declined due to lower revenues from Competitive Energy Services.
Highlights of the Release
Total electric sales increased by 2,675 thousand megawatt-hours (MWh), or 6.9% year over year. Residential sales were up by 1,833 thousand MWh (12.8%), while commercial sales grew by 542 thousand MWh (4.7%). The increase was attributable to the impact of above-average temperatures in the company’s service territories. Industrial sales improved by 302 thousand MWh (2.4%) primarily on account of higher usage in the shale, gas and coal sectors.
For the third quarter, FirstEnergy incurred operating expenses of $3,056 million, down 5% from $3,215 million a year ago primarily due to lower fuel and purchased power.
Operating income in the reported quarter stood at $861 million, down 5.2% from $908 million in the prior-year quarter.
FIRSTENERGY CP Price, Consensus and EPS Surprise
FIRSTENERGY CP Price, Consensus and EPS Surprise | FIRSTENERGY CP Quote
Financial Update
FirstEnergy's cash on hand as of Sep 30, 2016 was $551 million, up from $131 million as of Dec 31, 2015.
Cash from operating activities in the third quarter was $1,120 million, compared with $1,327 million a year ago.
Long-term debt and other long-term obligations as of Sep 30, 2016 were $18,532 million, compared with $19,099 million as of Dec 31, 2015.
Guidance
FirstEnergy has raised its operating earnings guidance for 2016 to the range of $2.60-$2.70from its previous expectations of $2.40–$2.60.
Other Utility Releases
NextEra Energy, Inc. (NEE - Free Report) announced third-quarter 2016 adjusted earnings of $1.74 per share, outpacing the Zacks Consensus Estimate of $1.65 by 5.5%.
WEC Energy Group (WEC - Free Report) reported third-quarter 2016 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 60 cents by 15%.
Xcel Energy Inc. (XEL - Free Report) recorded third-quarter operating earnings of 90 cents per share, outpacing the Zacks Consensus Estimate of 87 cents by 3.5%.
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.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>