Akron, OH based FirstEnergy Corp. (FE) operates one of the largest transmission networks in the U.S. and systematically invests capital to improve its quality of service. In 2015, the company has plans to substantially invest in its service areas to enhance the reliability of electric systems.
FirstEnergy expects the shale boom to trigger huge growth opportunities. This has led to its ambitious “Energizing the Future” plan aimed at upgrading and expanding its transmission capabilities, which will enable it to service the extra load.
Nonetheless, FirstEnergy’s operations are exposed to environment related regulatory risks as coal still consists 56.5% of its generation portfolio. EPA’s Clean Power Plan proposal, which aims at lowering carbon emissions, might impact its coal-fired electricity producing units.
FirstEnergy does have a solid history when it comes to earnings as the stock has beaten estimates in the last four quarters, making for an average surprise of just over 8.1%.
Currently, FirstEnergy has a Zacks Rank #3 (Hold), but that could definitely change following Progressive earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: FirstEnergy beats on earnings. Our consensus called for EPS of 52 cents, and the company reported EPS of 62 cents.
Revenue: Revenues beat too. Our consensus called for revenues of $3.159 billion, and the company reported revenues of $3.898 billion.
Key Stats to Note: Total distribution deliveries were 40,581 thousand megawatt-hours (“MWH”), up only 0.3% year over year.
Cash from operations were $193 million in the quarter.
While the company reiterated 2015 earnings guidance of $2.40 to $2.70 per share, it expects second quarter earnings between 42 cents and 50 cents per share.
Check back later for our full write up on this FE earnings report later!
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