Infrastructure
FirstEnergy Reports Falling Demand (FE, AEP)
Published:
Last Updated:
FirstEnergy Corporation (NYSE:FE) reported 2008 EPS of $4.38, higher than anticipated EPS of $4.33. Revenue for the year also beat expectations, coming in at $14.6 billion compared with average estimates of $14.51 billion. What may be more interesting than the earnings is the trends in usage.
The company saw an overall decrease in electricity sales of 2.5% from 2007 to 2008. In the fourth quarter, retail sales dropped 4.8% and wholesale sales dropped 3.4%. Distribution deliveries fell 1.9% for the year and 4% for the fourth quarter on lower demand from industrial customers.
FirstEnergy’s performance is nearly identical with that of American Electric Power Corporation (NYSE:AEP). AEP reported 2008 EPS of $3.43, and guided 2009 EPS to $3.00-$3.40. FirstEnergy did not provide guidance, but falling demand for electricity, especially from industrial customers does not inspire confidence.
Analysts had early 2009 EPS estimates for FirstEnergy at $4.73. Barring a significant turnaround in demand, that does not seem likely. Shares in FirstEnergy are up about 1.25% in early trading.
Paul Ausick
February 24, 2009
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
