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FE NYSE· FirstEnergy Corporation
Earnings report Q4 2023

FE Reports Strong Revenue Growth in Latest Quarter

Segments of Revenue

FE reported a significant increase in total revenues for the latest quarter, with a growth of $186 million compared to the same period last year. This growth can be attributed to several factors, including the absence of a reserve for customer refunds associated with the FERC Audit, a true-up adjustment for the recovery of certain transmission formula rate operating costs, and a higher rate base.

Strengths

FE's strong revenue growth in the latest quarter can be attributed to various factors. Firstly, the absence of a reserve for customer refunds associated with the FERC Audit positively impacted the company's revenues. Additionally, a true-up adjustment for the recovery of certain transmission formula rate operating costs further contributed to the revenue growth. Furthermore, FE's increased rate base resulting from regulated capital investments played a significant role in driving the company's revenue growth.

Challenges

Despite the overall positive performance, FE faced a challenge in the form of a 19.9% minority equity interest sale in FET that closed in May 2022. This sale partially offset the positive impact of regulated capital investments on the company's earnings.

Noteworthy

It is noteworthy that FE's Board declared a $0.02 per share increase in the quarterly common dividend payable in December 2023. This represents a 5% increase compared to the previous quarterly payments since March 2020. The consistent dividend payments and the increase in dividend amount reflect the company's commitment to providing returns to its shareholders.

Summary

FE demonstrated strong revenue growth in the latest quarter, with total revenues increasing by $186 million compared to the same period last year. This growth can be attributed to the absence of customer refund reserves, a true-up adjustment for the recovery of certain operating costs, and an increased rate base resulting from regulated capital investments. Despite the challenge posed by the minority equity interest sale, FE's overall financial performance remains robust. The company's commitment to shareholder returns is evident through the increase in the quarterly common dividend.

Source documents

Form 10-K  filed on Feb 13, 2024
121 pages scanned

Reference data

Company financials Q4 revenue 2.96B
Analyst estimates Q4 EPS missed by -27.03%
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