Revenue Analysis:
The Total Revenue for FE showed growth over the reviewed periods, increasing from $3.14 billion in December 2023 to $3.29 billion by March 2024. Operating Revenue followed a similar pattern. Gross Profit also increased correspondingly, from $2.11 billion in December 2023 to $2.15 billion in March 2024, indicating that FE managed to maintain profitability in core operations.
Cost Management:
Cost of Revenue increased slightly from $1.03 billion in December 2023 to $1.14 billion in March 2024. Operating Expenses in March 2024 were at $1.70 billion, up from $1.68 billion in December 2023. This suggests a controlled scaling in operational costs in relation to revenue.
Profitability Analysis:
EBITDA remained strong at $953 million in March 2024, compared to $921 million in December 2023. Operating Income saw an increase from $431 million in December 2023 to $448 million in March 2024. Pretax Income showed significant growth, moving from $266 million to $402 million in the same periods. Net Income also rose impressively from $175 million in December 2023 to $253 million in March 2024.
Cash Flow Indicators:
Reconciled Depreciation values were substantial, indicating significant investment in capital assets: $276 million in March 2024 up from $387 million in December 2023. Interest Expenses remained consistent showing a financial structure with a stable cost in borrowing: $275 million in March 2024.
Taxation:
Tax provisions increased to $135 million in March 2024 from $74 million in December 2023, suggesting higher taxable income. Effective Tax Rates also adjusted slightly from 27.8% to 33.6% in the same period.
Shareholder Metrics:
Diluted EPS was at 0.44 in March 2024, showing improvement from previous periods. This increases the attractiveness of the stock to new investors. The number of average diluted shares was around 576 million in March 2024, which provides a basis for the EPS calculations.
Conclusion:
FE demonstrated a positive trend in revenue growth accompanied by controlled increases in cost of revenue and expenses. Profitability metrics like EBITDA, operating income, and net income have improved. The financial health appears strong based on cash management and depreciation investment. Tax rates are in line with corporate adjustments, and shareholder metrics indicate good returns. Based on these analyses, FE could be considered a viable investment opportunity, assuming sector stability and market conditions support this outlook.