FirstEnergy Corp Earnings Cheat Sheet: Full Steam Ahead

S&P 500 (NYSE:SPY) component FirstEnergy Corp (NYSE:FE) reported net income above Wall Street’s expectations for the third quarter. FirstEnergy is a diversified energy company that operates through its subsidiaries: OE, CEI, TE, Penn, ATSI, JCP&L, Met-Ed and Penelec.

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FirstEnergy Earnings Cheat Sheet for the Third Quarter

Results: Net income for FirstEnergy Corp rose to $509 million ($1.22 per share) vs. $175 million (59 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 27.3% to $4.7 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FE reported adjusted net income of $1.34 per share. By that measure, the company beat the mean estimate of $1.23 per share. It fell short of the average revenue estimate of $5.35 billion.

Quoting Management: Chief Executive Officer Anthony J. Alexander. “Based on our strong third quarter results and our continued confidence in our business strategy, we are reaffirming 2011 non-GAAP earnings guidance of $3.30 to $3.50 per share, and 2012 and 2013 non-GAAP guidance of $3.20 to $3.50 per share.”

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the second quarter, net income fell 31.7% from the year earlier, while the figure fell 67.7% in the first quarter, 22.3% in the fourth quarter of the last fiscal year and 23.5% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 29.8% to $4.06 billion in the second quarter. The figure rose 8.4% in the first quarter from the year earlier and climbed 8.9% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 8 cents, and in the first quarter, it fell short by 6 cents.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next quarter performance. The average estimate for the fourth quarter is now 74 cents per share, down from 76 cents. For the fiscal year, the average estimate has moved up from $3.29 a share to $3.35 over the last ninety days.

Competitors to Watch: American Electric Power Co., Inc. (NYSE:AEP), Consolidated Edison, Inc. (NYSE:ED), CH Energy Group, Inc. (NYSE:CHG), Public Service Enterprise Group Inc. (NYSE:PEG), NextEra Energy, Inc. (NYSE:NEE), PPL Corporation (NYSE:PPL), The Southern Company (NYSE:SO), Pepco Holdings, Inc. (NYSE:POM), Duke Energy Corporation (NYSE:DUK), and Exelon Corporation (NYSE:EXC).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)