FirstEnergy(US:FE) ZACKSยท2024-11-28 17:35Core Viewpoint - FirstEnergy reported a decline in Q3 earnings and sales, missing consensus estimates and lowering its 2024 EPS guidance, while still maintaining a long-term growth outlook and capital investment plan. Financial Performance - Q3 2024 operating earnings were 85 cents per share, missing the Zacks Consensus Estimate of 95 cents by 6.6% [2] - Earnings decreased 3.4% from the previous year's figure of 88 cents, attributed to higher storm restoration costs and lower distribution revenues in Ohio [3] - Total revenues were $3.73 billion, missing estimates by 6.4%, but increased 6.9% from $3.48 billion in the prior year [5] - Operating expenses rose to $3 billion, up 6.4% from $2.82 billion year-over-year [7] Segment Performance - Distribution Services and Retail Generation revenues totaled $3.07 billion, up 6.9% year-over-year [6] - Transmission segment revenues amounted to $0.56 billion, reflecting a 9.4% increase from the prior year [6] - Other segment revenues were $104 million, down from $110 million in the previous year [6] Guidance and Future Outlook - The company revised its 2024 EPS guidance to a range of $2.61-$2.71, down from $2.61-$2.81, with the Zacks Consensus Estimate at $2.70 [11] - FirstEnergy reaffirmed its long-term annual operating EPS growth rate of 6-8% and plans to continue its capital investment of $26 billion for 2024-2028 [11] - Capital investment for 2024 was raised to $4.6 billion, a 24% year-over-year increase [12] Liquidity and Debt - As of October 28, 2024, available liquidity was $6.03 billion, including cash and cash equivalents of $290 million [9] - Long-term debt totaled $21.6 billion, down from $22.89 billion at the end of 2023 [9] Industry Context - FirstEnergy is part of the Zacks Utility - Electric Power industry, with Avangrid (AGR) reporting a 5.5% year-over-year revenue increase in its latest quarter [16] - Avangrid's expected earnings for the current quarter show a year-over-year decline of 36.1% [17]