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FirstEnergy (FE) Q2 Earnings On Par, Revenues Lag Estimates
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FirstEnergy (FE - Free Report) reported second-quarter 2024 operating earnings of 56 cents per share, on par with the Zacks Consensus Estimate.
The bottom line increased 19.1% from the year-ago quarter’s figure of 47 cents. The year-over-year increase in earnings reflects the company's Energize365 investment plan, including rate base growth in distribution and transmission formula rate programs, higher distribution sales and constructive regulatory outcomes in multiple jurisdictions.
On a GAAP basis, the second-quarter earnings were 8 cents, down 80.5% from 41 cents in the year-ago quarter.
Total Revenues
Operating revenues of $3.28 billion missed the Zacks Consensus Estimate of $3.47 billion by 5.58%. The top line, however, increased 9.1% from $3 billion in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
Distribution Services and Retail Generation: Revenues from this segment totaled $2.62 billion, up 10.2% from the prior-year quarter’s level.
Transmission: Earnings from this segment amounted to $0.58 billion, up 6.5% from $0.52 billion reported in the prior-year quarter.
Other: Revenues from this segment amounted to $84 million compared with $113 million in the year-ago quarter.
Highlights of the Release
Total operating expenses were $2.86 billion, up 13.1% from the year-ago quarter’s level of $2.52 billion. The year-over-year increase in other operating expenses resulted in an overall increase in expenses, while the cost of fuel and purchased power was lower than the year-ago quarter.
The company reported an interest expense of $285 million, up 3.3% from the prior-year quarter’s level of $276 million.
On a weather-adjusted basis, total distribution deliveries increased 3% compared to the second quarter of 2023. Weather-adjusted usage increased 4% and 7% among its residential and commercial customers, respectively.
Financial Highlights
As of Jul 29, 2024, FE reported available liquidity of $5.80 billion, including cash and cash equivalents of $508 million.
Long-term debt and other long-term obligations as of Jun 30, 2024, totaled $20.83 billion compared with $22.89 billion as of Dec 31, 2023.
Net cash from operating activities for the first six months of 2024 totaled $1.07 billion compared with $213 million used for operating activities in the year-ago period.
Guidance
FirstEnergy reaffirmed 2024 earnings per share in the range of $2.61-$2.81. The Zacks Consensus Estimate for the same is pegged at $2.70, a tad lower than $2.71, the midpoint of the company’s guided range.
FirstEnergy reaffirmed its long-term annual operating EPS growth rate of 6-8%. FE will continue with its capital investment plan of $26 billion for the 2024-2028 period.
Xcel Energy (XEL - Free Report) is going to report its second-quarter results on Aug 1. It has an Earnings ESP of +6.12% and a Zacks Rank #2 at present. The company delivered an earnings surprise of 10% in the last reported quarter.
TransAlta Corporation (TAC - Free Report) is going to report second-quarter results on Aug 1. The Zacks Consensus Estimate for second-quarter earnings per share of 5 cents has moved up 20% in the past 60 days.
The AES Corporation (AES - Free Report) is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for second-quarter earnings per share of 36 cents has moved up 21.1% in the past 60 days.
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FirstEnergy (FE) Q2 Earnings On Par, Revenues Lag Estimates
FirstEnergy (FE - Free Report) reported second-quarter 2024 operating earnings of 56 cents per share, on par with the Zacks Consensus Estimate.
The bottom line increased 19.1% from the year-ago quarter’s figure of 47 cents. The year-over-year increase in earnings reflects the company's Energize365 investment plan, including rate base growth in distribution and transmission formula rate programs, higher distribution sales and constructive regulatory outcomes in multiple jurisdictions.
On a GAAP basis, the second-quarter earnings were 8 cents, down 80.5% from 41 cents in the year-ago quarter.
Total Revenues
Operating revenues of $3.28 billion missed the Zacks Consensus Estimate of $3.47 billion by 5.58%. The top line, however, increased 9.1% from $3 billion in the year-ago quarter.
FirstEnergy Corporation Price, Consensus and EPS Surprise
FirstEnergy Corporation price-consensus-eps-surprise-chart | FirstEnergy Corporation Quote
Segmental Performance
Distribution Services and Retail Generation: Revenues from this segment totaled $2.62 billion, up 10.2% from the prior-year quarter’s level.
Transmission: Earnings from this segment amounted to $0.58 billion, up 6.5% from $0.52 billion reported in the prior-year quarter.
Other: Revenues from this segment amounted to $84 million compared with $113 million in the year-ago quarter.
Highlights of the Release
Total operating expenses were $2.86 billion, up 13.1% from the year-ago quarter’s level of $2.52 billion. The year-over-year increase in other operating expenses resulted in an overall increase in expenses, while the cost of fuel and purchased power was lower than the year-ago quarter.
The company reported an interest expense of $285 million, up 3.3% from the prior-year quarter’s level of $276 million.
On a weather-adjusted basis, total distribution deliveries increased 3% compared to the second quarter of 2023. Weather-adjusted usage increased 4% and 7% among its residential and commercial customers, respectively.
Financial Highlights
As of Jul 29, 2024, FE reported available liquidity of $5.80 billion, including cash and cash equivalents of $508 million.
Long-term debt and other long-term obligations as of Jun 30, 2024, totaled $20.83 billion compared with $22.89 billion as of Dec 31, 2023.
Net cash from operating activities for the first six months of 2024 totaled $1.07 billion compared with $213 million used for operating activities in the year-ago period.
Guidance
FirstEnergy reaffirmed 2024 earnings per share in the range of $2.61-$2.81. The Zacks Consensus Estimate for the same is pegged at $2.70, a tad lower than $2.71, the midpoint of the company’s guided range.
FirstEnergy reaffirmed its long-term annual operating EPS growth rate of 6-8%. FE will continue with its capital investment plan of $26 billion for the 2024-2028 period.
Zacks Rank
FirstEnergy currently has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Xcel Energy (XEL - Free Report) is going to report its second-quarter results on Aug 1. It has an Earnings ESP of +6.12% and a Zacks Rank #2 at present. The company delivered an earnings surprise of 10% in the last reported quarter.
TransAlta Corporation (TAC - Free Report) is going to report second-quarter results on Aug 1. The Zacks Consensus Estimate for second-quarter earnings per share of 5 cents has moved up 20% in the past 60 days.
The AES Corporation (AES - Free Report) is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for second-quarter earnings per share of 36 cents has moved up 21.1% in the past 60 days.