Diversified energy company
) announced first-quarter 2014 operating earnings of 39 cents per
share, lagging the Zacks Consensus Estimate of 41 cents by 4.9%
and the year-ago earnings of 76 cents by 48.7%.
FirstEnergy's earnings in the reported quarter were within its
guidance range of 35 cents to 45 cents.
The year-over-year decline reflects an extremely challenging
competitive business, which more than offset the strong
performance of its distribution and transmission business.
Including one-time charges and gains of 11 cents per share, GAAP
earnings per share were 50 cents versus 47 cents in the
FirstEnergy generated total revenues of $4.2 billion in the first
quarter, up 13.5% year over year.
The top line of the company also surpassed the Zacks Consensus
Estimate of $3.3 billion by 27.3%.
Highlights of the Release
FirstEnergy's total electric regulated distribution deliveries in
the reported quarter increased 5.9% year over year. Demand from
residential and commercial customers increased 6% and 11%
respectively due to a harsh winter. Demand from industrial
customers saw a 1% rise from the prior year.
Total expenses in the reported quarter were $3.79 billion, up
23.3% from the year-ago level, primarily due to a 53.8% increase
in purchased power expenses and a 34% increase in other operating
Interest expenses in the reported quarter were $0.26 billion, up
2.7% 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 Mar 31, 2014, was $0.11 billion
versus $0.21 billion as of Dec 31, 2013.
Cash from/(used in) operating activities in first quarter 2014
was ($92) million versus $50 million in the year-ago period.
Long-term debt and other obligations as of Mar 31, 2014, were
$16.8 billion versus $15.8 billion as of Dec 31, 2013.
Taking into consideration its performance in the first quarter
2014, FirstEnergy lowered its earnings per share guidance for
2014 to the range of $2.40 to $2.60 from $2.45 to $2.85 per share
GAAP earnings for 2014 are expected in the range of $2.27 to
$2.49 per share, down from the prior forecast of $2.38 to $2.82
Other Company Releases
American Electric Power Company Inc.
) reported first quarter 2014 operating earnings of $1.15 per
share, beating the Zacks Consensus Estimate of 91 cents by 26.4%.
Brookfield Infrastructure Partners L.P.
) announced first-quarter 2014 earnings of 89 cents per unit, a
penny higher than the Zacks Consensus Estimate.
NRG Energy Inc.
) reported a first quarter 2014 operating loss of 18 cents per
share, wider than the Zacks Consensus Estimate of 12 cents.
FirstEnergy currently has a Zacks Rank #3 (Hold).
AMER ELEC PWR (AEP): Free Stock Analysis
BROOKFIELD INFR (BIP): Free Stock Analysis
FIRSTENERGY CP (FE): Free Stock Analysis
NRG ENERGY INC (NRG): Free Stock Analysis
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