FirstEnergy Set to Announce Earnings Amid Mixed Market Performance
FirstEnergy Corp. (FE), headquartered in Akron, Ohio, operates in the utilities sector, focusing on electricity generation and services. With a market capitalization of $24.6 billion, the company serves around 6 million customers across multiple states and plans to release its fiscal Q3 earnings on Tuesday, Oct. 29, after market hours.
Analysts Expect Steady Earnings Growth
Analysts project FE will report a profit of $0.90 per share, reflecting a 2.3% increase from last year’s $0.88 per share. FirstEnergy has outperformed Wall Street’s expectations in its last four quarters. In the most recent quarter, the company met the consensus EPS estimate.
Future Earnings Projections
Looking ahead, estimates for fiscal 2024 suggest FE will achieve an EPS of $2.70, a rise of 5.5% from $2.56 in fiscal 2023. By fiscal 2025, EPS is anticipated to grow another 7.4%, reaching $2.90.
Stock Performance Compared to Industry
In 2024, FE’s share prices have increased by 17.6%, which is lower than the S&P 500 Index’s ($SPX) 22.8% rise and the Utilities Select Sector SPDR Fund’s (XLU) 26.5% increase year-to-date.
Mixed Reactions to Quarterly Earnings
Despite reporting weaker-than-expected Q2 revenue of $3.3 billion on Jul. 30, FirstEnergy shares increased slightly the next day. The rise was attributed to improved operating profits from higher electricity rates and robust demand, especially during heat waves. The adjusted earnings of $0.56 per share met the analysts’ expectations, which helped stabilize investor confidence. However, the company’s net income faced pressure from environmental costs, asset obligations, and legal issues stemming from past bribery claims.
Analyst Ratings and Future Outlook
The general sentiment among analysts towards FirstEnergy’s stock is classified as “Moderate Buy.” Out of 16 analysts, there are seven “Strong Buys,” two “Moderate Buys,” six “Holds,” and one “Moderate Sell.” This outlook reflects a slight improvement compared to three months ago, when just six analysts recommended a “Strong Buy.” Currently, the average price target for FE stands at $46.12, suggesting a modest upside potential of about 7% from its current price.
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On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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