Akron, Ohio-based FirstEnergy Corp. (FE) is a diversified energy company in the utilities sector. With a market cap of $24.6 billion, it provides electricity generation, transmission, and distribution services to approximately 6 million customers across several U.S. states. The company is expected to unveil its fiscal Q3 earnings results after the market closes on Tuesday, Oct. 29.
Prior to the event, analysts anticipate FE to report a profit of $0.90 per share, up 2.3% from $0.88 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the last reported quarter, the company met the consensus EPS estimate.
For fiscal 2024, analysts expect FE to report EPS of $2.70, up 5.5% from $2.56 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow 7.4% year-over-year to $2.90.
In 2024, FE's shares have risen 17.6%, underperforming both the S&P 500 Index's ($SPX) 22.8% gain and the Utilities Select Sector SPDR Fund's (XLU) 26.5% increase on a YTD basis.
Despite reporting weaker-than-expected Q2 revenue of $3.3 billion on Jul. 30, shares of FirstEnergy rose marginally the following day due to higher operating profits driven by increased electricity rates and strong demand, particularly during extremely hot weather. The company's adjusted earnings of $0.56 per share met expectations, reassuring investors. Despite this, gains were limited by a sharp decline in net income, impacted by environmental compliance costs, asset retirement obligations, and legal expenses tied to past bribery allegations.
Analysts' consensus rating on FirstEnergy stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 16 analysts covering the stock, opinions include seven "Strong Buys," two "Moderate Buys," six "Holds," and one "Moderate Sell." This configuration is slightly more bullish than three months ago, with six analysts suggesting a "Strong Buy." The average analyst price target for FE is $46.12, suggesting a potential upside of just 7% from current levels.
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 is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
