FirstEnergy Q4 Earnings Lag Estimates, Revenues Increase Y/Y

Core Viewpoint - FirstEnergy reported mixed financial results for the fourth quarter of 2024, with operating earnings missing estimates but showing year-over-year growth in both earnings and revenues [1][2][4]. Financial Performance - Fourth-quarter operating earnings were 67 cents per share, missing the Zacks Consensus Estimate of 70 cents by 4.3% [1]. - The bottom line increased by 8.1% from 62 cents in the same quarter last year, driven by rate base growth in distribution and transmission programs [2]. - GAAP earnings for the fourth quarter were 45 cents per share, up from 30 cents in the fourth quarter of 2023 [3]. - Total revenues for the fourth quarter were $3.18 billion, missing the Zacks Consensus Estimate of $3.67 billion by 13.5%, but increased by 1% from $3.15 billion in the prior year [4]. Annual Performance - For the full year 2024, FirstEnergy reported total revenues of $13.47 billion, reflecting a year-over-year increase of 4.7% from $12.87 billion in 2023 [4]. - Total operating expenses for 2024 were $11.1 billion, up 4.6% from $10.6 billion in the previous year [5]. - Operating income for 2024 totaled $2.38 billion, an increase of 4.8% from $2.27 billion in 2023 [5]. Distribution and Deliveries - Total distribution deliveries increased by 2.8% in 2024 compared to 2023, attributed to cooling degree days being 37% above the previous year [6]. Future Guidance - FirstEnergy expects 2025 earnings per share in the range of $2.40-$2.60, indicating a 5.5% increase over the 2024 guidance [7]. - The Zacks Consensus Estimate for 2025 is $2.89 per share, which is higher than the company's guidance [7]. - The company plans a capital investment of $5 billion in 2025, up from $4.5 billion in 2024, reflecting an 11% year-over-year increase [8]. Zacks Rank - FirstEnergy currently holds a Zacks Rank of 4 (Sell) [9].