FirstEnergy Corporation (FE - Free Report) delivered third-quarter 2020 operating earnings of 84 cents per share, which beat the Zacks Consensus Estimate of 80 cents by 5%. Also, the bottom line rose 10.5% from the year-ago quarter’s figure.
On a GAAP basis, the company’s earnings increased to 84 cents per share from 73 cents earned in the prior-year quarter.
Total Revenues
FirstEnergy generated revenues of $3,022 million in the third quarter, which outpaced the Zacks Consensus Estimate of $2,905.3 million by 4%. Also, the top line moved up 2% from $2,963 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 5.1% on a year-over-year basis. Commercial deliveries declined 5.5% and industrial sales fell 6.3% year over year. Total distribution deliveries dipped 1.7%from the prior-year quarter’s level due to the ongoing pandemic’s impact on commercial and industrial sales.
Total operating expenses in the quarter under review came in at $2,301 million, up 0.8% from $2,282 million in the prior-year quarter.
In the third quarter, operating income was $721 million, up 5.9% from $681 million in the year-ago quarter.
Financial Update
FirstEnergy had cash, cash equivalents and restricted cash worth $296 million as of Sep 30, 2020 compared with $679 million on Dec 31, 2019.
Long-term debt and other long-term obligations as of Sep 30, 2020 were $22,203 million, up from $19,618 million on Dec 31, 2019.
Net cash provided byoperating activities in the first nine months of 2020 was $851 million compared with $1,737 million in first nine months of 2019.
Guidance
Management reaffirmed its 2020 earnings per share (EPS) outlook in the range of $2.40-$2.60 with the current Zacks Consensus Estimate being $2.53. Also, the company expects operating EPS to witness a CAGR of 5-7% during the 2018-2023 time period.
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