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Will FirstEnergy (FE) Stay on the Beat Track in Q1 Earnings?
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FirstEnergy Corporation (FE - Free Report) is expected to come up with a positive earnings surprise in its first-quarter 2018 report, before the market opens, on Apr 23. This utility reported positive earnings surprise in the last four quarters with an average surprise of 6.04%.
Why a Likely Positive Surprise?
Our proven model shows that FirstEnergy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates, and FirstEnergy has the right mix.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate of 72 cents and the Zacks Consensus Estimate of 70 cents is +3.35%. This is a meaningful and leading indicator of a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: FirstEnergy carries a Zacks Rank #3. The combination of FirstEnergy’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
For the first quarter of 2018, the company expects its earnings per share in the range of 60-70 cents, while the Zacks Consensus Estimate for earnings is pegged at 70 cents. During the quarter, FirstEnergy announced transformational equity investments of $2.5 billion, which will help in the transition of the company to a fully regulated one by mid-2018.
FirstEnergy’s “Energizing the Future” plan to create a stronger distribution system for its customers will help upgrade and broaden the company’s transmission capabilities. The company is likely to have benefited from this initiative in the first quarter of 2018 and many more quarters to come.
The company is expected to benefit from higher weather-related usage from the residential sector and improvement in demand from the industrial sector driven by fossil fuels and steel industries.
Other Stocks to Consider
In addition to FirstEnergy, here are a few more players from the industry that have the right combination of elements to post an earnings beat this quarter.
CenterPoint Energy Inc. (CNP - Free Report) is expected to release first-quarter 2018 results on May 4, 2018. It has an Earnings ESP of +1.58% and a Zacks Rank #1.
Xcel Energy Inc. (XEL - Free Report) is anticipated to release first-quarter 2018 results on Apr 26, 2018. It has an Earnings ESP of +2.31% and a Zacks Rank #2.
CMS Energy Corporation (CMS - Free Report) is expected to release first-quarter 2018 results on Apr 26, 2018. It has an Earnings ESP of +3.41% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Will FirstEnergy (FE) Stay on the Beat Track in Q1 Earnings?
FirstEnergy Corporation (FE - Free Report) is expected to come up with a positive earnings surprise in its first-quarter 2018 report, before the market opens, on Apr 23. This utility reported positive earnings surprise in the last four quarters with an average surprise of 6.04%.
Why a Likely Positive Surprise?
Our proven model shows that FirstEnergy is likely to beat estimates because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to be able to beat estimates, and FirstEnergy has the right mix.
Zacks ESP: Earnings ESP, which represents the difference between the Most Accurate estimate of 72 cents and the Zacks Consensus Estimate of 70 cents is +3.35%. This is a meaningful and leading indicator of a likely positive 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 carries a Zacks Rank #3. The combination of FirstEnergy’s favorable Zacks Rank and positive ESP makes us reasonably confident of a positive surprise this season.
Conversely, we caution against Sell-rated stocks (#4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Factors at Play
For the first quarter of 2018, the company expects its earnings per share in the range of 60-70 cents, while the Zacks Consensus Estimate for earnings is pegged at 70 cents. During the quarter, FirstEnergy announced transformational equity investments of $2.5 billion, which will help in the transition of the company to a fully regulated one by mid-2018.
FirstEnergy’s “Energizing the Future” plan to create a stronger distribution system for its customers will help upgrade and broaden the company’s transmission capabilities. The company is likely to have benefited from this initiative in the first quarter of 2018 and many more quarters to come.
The company is expected to benefit from higher weather-related usage from the residential sector and improvement in demand from the industrial sector driven by fossil fuels and steel industries.
Other Stocks to Consider
In addition to FirstEnergy, here are a few more players from the industry that have the right combination of elements to post an earnings beat this quarter.
CenterPoint Energy Inc. (CNP - Free Report) is expected to release first-quarter 2018 results on May 4, 2018. It has an Earnings ESP of +1.58% and a Zacks Rank #1.
Xcel Energy Inc. (XEL - Free Report) is anticipated to release first-quarter 2018 results on Apr 26, 2018. It has an Earnings ESP of +2.31% and a Zacks Rank #2.
CMS Energy Corporation (CMS - Free Report) is expected to release first-quarter 2018 results on Apr 26, 2018. It has an Earnings ESP of +3.41% and a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>