Valued at a market cap of $23.4 billion, FirstEnergy Corp. (FE) engages in the generation, distribution, and transmission of electricity. The Akron, Ohio-based company operates through Distribution, Integrated, and Stand-Alone Transmission segments. The utility giant is expected to release its Q1 2025 earnings after the market closes on Wednesday, Apr. 23.
Ahead of this event, analysts expect FirstEnergy to post adjusted earnings of $0.58 per share, reflecting a growth of 5.5% from $0.55 per share reported in the same quarter last year. While the company has met or surpassed Street's bottom-line estimates twice over the past four quarters, it fell short of expectations on two other occasions.
Meanwhile, for fiscal 2025, analysts expect FE to report an adjusted EPS of $2.68, up 1.9% from $2.63 in fiscal 2024. Moreover, its earnings are expected to further grow 9.3% year-over-year to $2.93 in fiscal 2026.
Shares of FE have gained 7.9% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 3.2% uptick, however, the stock has lagged behind the Utilities Select Sector SPDR Fund’s (XLU) 17.9% surge during the same time frame.
FE stock prices slid nearly 10.5% in the trading session after the release of its weaker-than-expected Q4 results on Feb. 26. The company’s Q4 revenue came in at $3.2 billion, missing the Street's projections of $3.7 billion by a notable margin. Meanwhile, driven by new base rates and lower operating expenses & financing costs, its Integrated segment earnings experienced a significant boost. However, its bottom-line results fell short of expectations, with adjusted EPS at $0.67 versus the Street’s forecast of $0.70.
Looking ahead to fiscal 2025, FE expects its adjusted EPS to range between $2.40 to $2.60, representing a 5.5% year-over-year growth at midpoint. Furthermore, the company continues to target a long-term EPS growth rate of 6% to 8%, supported by a robust $28 billion capital investment plan spanning 2025 to 2029.
Furthermore, analysts' consensus view on FirstEnergy is moderately optimistic, with a "Moderate Buy" rating overall. Among 16 analysts covering the stock, six suggest a "Strong Buy," one gives a "Moderate Buy," eight recommend a "Hold”, and one gives a “Moderate Sell” rating. Its mean price target of $43.78 represents a 7.8% premium to current price levels.
