We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FirstEnergy (FE) Up 4.5% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for FirstEnergy (FE - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FirstEnergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
FirstEnergy Q2 Earnings On Par, Revenues Lag Estimates
FirstEnergy 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, FirstEnergy has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, FirstEnergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FirstEnergy belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, NextEra Energy (NEE - Free Report) , has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
NextEra reported revenues of $6.07 billion in the last reported quarter, representing a year-over-year change of -17.4%. EPS of $0.96 for the same period compares with $0.88 a year ago.
For the current quarter, NextEra is expected to post earnings of $1.01 per share, indicating a change of +7.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.8% over the last 30 days.
NextEra has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FirstEnergy (FE) Up 4.5% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for FirstEnergy (FE - Free Report) . Shares have added about 4.5% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FirstEnergy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
FirstEnergy Q2 Earnings On Par, Revenues Lag Estimates
FirstEnergy 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
VGM Scores
Currently, FirstEnergy has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision has been net zero. Notably, FirstEnergy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FirstEnergy belongs to the Zacks Utility - Electric Power industry. Another stock from the same industry, NextEra Energy (NEE - Free Report) , has gained 4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
NextEra reported revenues of $6.07 billion in the last reported quarter, representing a year-over-year change of -17.4%. EPS of $0.96 for the same period compares with $0.88 a year ago.
For the current quarter, NextEra is expected to post earnings of $1.01 per share, indicating a change of +7.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.8% over the last 30 days.
NextEra has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.