FirstEnergy Corp Earnings: Consecutive Profit Quarter Streak Stays Intact
S&P 500 (NYSE:SPY) component FirstEnergy Corp (NYSE:FE) reported its results for the third quarter. FirstEnergy is a diversified energy company that operates through its subsidiaries: OE, CEI, TE, Penn, ATSI, JCP&L, Met-Ed and Penelec.
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FirstEnergy Corp Earnings Cheat Sheet
Results: Net income for the utility-electric power fell to $425 million ($1.01 per share) vs. $530 million ($1.27 per share) a year earlier. This is a decline of 19.8% from the year-earlier quarter.
Revenue: Fell 8.6% to $4.31 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: FirstEnergy Corp reported adjusted net income of $1.11 per share. By that measure, the company beat the mean estimate of $1.06 per share. It fell short of the average revenue estimate of $5.19 billion.
Quoting Management: “We continue to be very pleased with the progress of our retail strategy and we remain confident that FirstEnergy will be well-positioned for growth when the economy eventually recovers,” said FirstEnergy President and Chief Executive Officer Anthony J. Alexander. “We are taking a number of actions to manage our expenses and ensure that we are operating as cost-effectively as possible in light of the continued weak sales environment and low market prices for power.”
The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 4 cents, and in the first quarter, it came in under estimates by one cent.
Revenue has fallen in the past two quarters. In the second quarter, revenue declined 4.7% to $3.87 billion from the year-earlier quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past month, the average estimate for the fourth quarter has gone up from 76 cents per share to 86 cents. The average estimate for the fiscal year is $3.37 per share, down from $3.39 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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