We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FirstEnergy (FE): Will it Surprise this Earnings Season?
Read MoreHide Full Article
We expect FirstEnergy Corp. (FE - Free Report) to beat estimates when it reports fourth-quarter 2016 results on Feb 21, after market close.
Last quarter, the company posted a positive earnings surprise of 18.42%, with a four-quarter average of a positive 7.34%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that FirstEnergy is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +2.56%. This is because the Most Accurate estimate is pegged at 40 cents while the Zacks Consensus Estimate stands at 39 cents. This is a meaningful and leading indicator of a likely positive earnings surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FirstEnergy has a Zacks Rank #3 (Hold). Note that stocks with Zacks Ranks #1 (Strong Buy), 2 (Buy) and 3 have a significantly higher chance of beating earnings. Stocks with Zacks Rank #4 or 5 (Sell rated), on the other hand, should never be considered going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
The combination of FirstEnergy’s favorable Zacks Rank and positive ESP makes us reasonably confident of an earnings beat this season.
What’s Driving the Better-than-Expected Results?
In the industrial sector, sales are expected to increase in the fourth quarter driven by stronger demand from the shale, coal mining and steel industries, as well as the chemical and auto sectors. This will create demand for utility services, thereby aiding FirstEnergy’s top line.
However, above-average temperatures during the fourth quarter in FirstEnergy’s service territories are expected to hurt its top line.
Stocks to Consider
Here are a few stocks in the utility space worth considering as our model shows that they have the right combination of elements to post an earnings beat this quarter:
El Paso Electric Company (EE - Free Report) has an Earnings ESP of +20% and a Zacks Rank #3. It is scheduled to release its quarterly numbers on Feb 23.
Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #2. It is slated to report earnings on Feb 24.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FirstEnergy (FE): Will it Surprise this Earnings Season?
We expect FirstEnergy Corp. (FE - Free Report) to beat estimates when it reports fourth-quarter 2016 results on Feb 21, after market close.
Last quarter, the company posted a positive earnings surprise of 18.42%, with a four-quarter average of a positive 7.34%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that FirstEnergy is likely to beat earnings because it has the right combination of two key ingredients.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is +2.56%. This is because the Most Accurate estimate is pegged at 40 cents while the Zacks Consensus Estimate stands at 39 cents. This is a meaningful and leading indicator of a likely positive earnings surprise.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
FirstEnergy Corporation Price and EPS Surprise
FirstEnergy Corporation Price and EPS Surprise | FirstEnergy Corporation Quote
Zacks Rank: FirstEnergy has a Zacks Rank #3 (Hold). Note that stocks with Zacks Ranks #1 (Strong Buy), 2 (Buy) and 3 have a significantly higher chance of beating earnings. Stocks with Zacks Rank #4 or 5 (Sell rated), on the other hand, should never be considered going into the earnings announcement, especially when the company is witnessing negative estimate revisions.
The combination of FirstEnergy’s favorable Zacks Rank and positive ESP makes us reasonably confident of an earnings beat this season.
What’s Driving the Better-than-Expected Results?
In the industrial sector, sales are expected to increase in the fourth quarter driven by stronger demand from the shale, coal mining and steel industries, as well as the chemical and auto sectors. This will create demand for utility services, thereby aiding FirstEnergy’s top line.
However, above-average temperatures during the fourth quarter in FirstEnergy’s service territories are expected to hurt its top line.
Stocks to Consider
Here are a few stocks in the utility space worth considering as our model shows that they have the right combination of elements to post an earnings beat this quarter:
The Southern Company (SO - Free Report) is slated to report earnings on Feb 22. It is has an Earnings ESP of +6.45% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
El Paso Electric Company (EE - Free Report) has an Earnings ESP of +20% and a Zacks Rank #3. It is scheduled to release its quarterly numbers on Feb 23.
Pinnacle West Capital Corporation (PNW - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #2. It is slated to report earnings on Feb 24.
Just Released – Driverless Cars: Your Roadmap to Mega-Profits Today
In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>