Diversified energy company FirstEnergy Corp. (FE) reported Monday a loss for the fourth quarter compared to a profit last year, hurt by higher pension related charges. However, adjusted earnings per share matched analysts' expectations, while quarterly revenues missed their estimates. The company also reaffirmed its earnings guidance for the full-year 2013.
The Akron, Ohio-based electric utility reported a net loss of $148 million or $0.35 per share for the fourth quarter, compared to net income of $98 million or $0.23 per share in the prior-year quarter.
Results for the latest quarter primarily include $0.91 per share charge related to annual adjustment for pension and other post-employment benefits actuarial assumptions, while the year-ago quarter included $0.74 per share of a similar charge that was more than offset by a one-time gain from the sale of non-core assets.
Excluding items, normalized earnings for the quarter were $0.80 per basic share, compared to $0.77 per basic share in the year-ago quarter.
On average, 13 analysts polled by Thomson Reuters expected the company to report earnings of $0.80 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that adjusted results benefited from lower operating costs, higher distribution deliveries and increased investment income, partially offset by lower sales margins and a higher effective income tax rate.
Total revenues for the quarter declined to $3.50 billion from $3.86 billion in the same quarter last year, and missed four Wall Street analysts' consensus estimate of $4.60 billion.
Electric distribution deliveries for the fourth quarter edged up 0.7 percent from last year, and increased earnings by $0.04 per share. Industrial deliveries declined 2.9 percent, while residential deliveries increased 4.9 percent, and commercial deliveries remained flat with last year.
Total expenses for the quarter declined 6 percent to $3.53 billion from last year to $4.09 billion.
"In 2012, we successfully controlled costs, improved our operational performance, and continued building our competitive business, consistent with our strategies," President and CEO Anthony Alexander said in a statement.
For fiscal 2012, the company reported net income of $771 million or $1.84 per share, lower than $869 million or $2.21 per share in the prior year. Excluding items, adjusted earnings for the year were $3.34 per basic share, compared to $3.64 per basic share in the year ago. Total revenues for the year declined to $15.30 billion from $16.15 billion in the previous year.
Analysts expected the company to report full-year 2012 earnings of $3.35 per share on annual revenues of $16.82 billion.
Looking ahead to fiscal 2013, FirstEnergy reaffirmed its forecast for adjusted earnings in a range of $2.85 to $3.15 per share. Street is currently looking for full-year 2013 earnings of $2.98 per share.
"This year, we will remain focused on continuing the strong operational performance in our three core businesses, generation, transmission and distribution, while delivering financial stability and pursuing opportunities for growth," Alexander added.
In Monday's regular trading session, FE is currently trading at $40.56, up $0.02 or 0.05% on a volume of 0.12 million shares. In the past 52-week period, the stock has been trading in a range of $39.18 to $51.14.
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