Diversified energy company
) second-quarter 2014 operating earnings of 48 cents per share beat
the Zacks Consensus Estimate of 45 cents by nearly 6.7% but
lagged the year-ago earnings of 59 cents by 18.6%.
The year-over-year decline reflects an extremely challenging
competitive business, which more than offset the strong performance
of its distribution and transmission business. In addition, higher
operating expenses had an unfavorable impact on year-over-year
Firstenergy Corp - Earnings Surprise |
Including one-time charges of 33 cents per share, GAAP earnings
per share were 15 cents versus 39 cents in the prior-year quarter.
FirstEnergy generated total revenues of $3,497 million in the
second quarter, down marginally by 0.5% year over year.
The top line of the company surpassed the Zacks Consensus Estimate
of $3,282 million by nearly 6.6%.
Highlights of the Release
FirstEnergy's total electric regulated distribution deliveries in
the reported quarter increased less than 1% year over year. Demand
from industrial and commercial customers increased 2% and 1%
respectively while demand from residential customers saw a 1% drop
from the prior year due to milder weather conditions.
Total expenses in the reported quarter were $2,995 million, up 3.1%
from the year-ago level, primarily due to a 25.3% increase in
Interest expenses in the reported quarter were $262 million, up
2.3% year over year. The increase in interest expenses was
primarily due to the issue of new long-term debts.
FirstEnergy's cash on hand as of Jun 30, 2014, was $76 million
versus $218 million as of Dec 31, 2013.
Cash from/(used in) operating activities in the first half of 2014
was $622 million versus $493 million in the year-ago period.
Long-term debt and other obligations as of Jun 30, 2014, were $18.4
billion versus $15.8 billion as of Dec 31, 2013.
FirstEnergy reiterated its earnings per share guidance for 2014 in
the range of $2.40 to $2.60.
Other Company Releases
American Electric Power Company Inc.
) reported second quarter 2014 operating earnings of 80 cents per
share, beating the Zacks Consensus Estimate of 75 cents by 6.7%.
CMS Energy Corporation
) reported second-quarter 2014 earnings per share of 30 cents,
beating the Zacks Consensus Estimate of 26 cents by 15.4%.
) reported solid second quarter 2014 results with its adjusted
earnings of $1.08 per share well ahead of the Zacks Consensus
Estimate of 83 cents by 30.1%.
FirstEnergy currently has a Zacks Rank #3 (Hold).
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