FirstEnergy Earnings Cheat Sheet: Keeping the Profitability Streak Alive

Rising revenue was not enough for S&P 500 (NYSE:SPY) component FirstEnergy Corp (NYSE:FE) as the electric utilities company saw profit fall in the second quarter. FirstEnergy Corp. 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 Second Quarter

Results: Net income for the electric utilities company fell to $171 million (43 cents per share) vs. $256 million (87 cents per share) a year earlier. This is a decline of 35.5% from the year earlier quarter.

Revenue: Rose 31.1% to $4.1 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FE reported adjusted net income of 64 cents per share. By that measure, the company fell short of mean estimate of 75 cents per share. It beat the average revenue estimate of $3.97 billion.

Quoting Management: “These results are in line with our expectations, and today we are narrowing our 2011 non-GAAP earnings guidance to the upper end of the previous range – to $3.30 to $3.50 per share, from $3.20 to $3.50 per share,” said FirstEnergy President and Chief Executive Officer Anthony J. Alexander. “We have already made significant progress in realizing benefits from the merger with Allegheny Energy, and we remain confident that we will achieve our 2011 merger targets.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 8.4% to $3.58 billion in the first quarter. The figure rose 8.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 8.4% in the third quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by 6 cents in the first quarter and by 7 cents in the fourth quarter of the last fiscal year.

Net income has dropped 37% year over year on average across the last five quarters. Performance was hurt by a 67.7% decline in the first quarter from the year earlier quarter.

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).

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(Source: Xignite Financials)