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FirstEnergy (FE) to Report Q3 Earnings: What's in Store?

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FirstEnergy Corporation (FE - Free Report) is slated to release third-quarter 2021 results on Oct 28. The company’s earnings were on par with expectation in the last reported quarter.

Let’s focus on the factors that might have impacted its September quarter performance.

Factors to Consider

FirstEnergy’s third-quarter earnings are likely to have gained from strong residential demand, and improving demand from industrial and commercial customer groups. Efficient management of debt and cost is also expected to have boosted margins.

FirstEnergy’s third-quarter results are expected to be adversely impacted by the absence of Ohio decoupling revenues, and the company’s decision to forego lost distribution revenues from residential and commercial customers.

Expectations

The company expects third-quarter 2021 earnings in the range of 70-80 cents per share. The Zacks Consensus Estimate for the same is pegged at 80 cents, which indicates a 4.8% decline from the year-ago reported figure.

The Zacks Consensus Estimate for third-quarter sales stands at $3.11 billion, suggesting growth of 2.9% from the year-ago reported number.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for FirstEnergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

FirstEnergy Corporation Price and EPS Surprise

FirstEnergy Corporation Price and EPS Surprise

FirstEnergy Corporation price-eps-surprise | FirstEnergy Corporation Quote

Earnings ESP: The company has an Earnings ESP of -4.53%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, FirstEnergy carries a Zacks Rank #3.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat on earnings this reporting cycle.

DTE Energy (DTE - Free Report) is set to release third-quarter 2021 results on Oct 27. It has an Earnings ESP of +4.90% and a Zacks Rank #3.

The AES Corporation (AES - Free Report) is set to release third-quarter 2021 results on Nov 4. It has an Earnings ESP of +3.53% and a Zacks Rank #3.

Pinnacle West Capital Corp. (PNW - Free Report) is set to release third-quarter 2021 results on Nov 5. It has an Earnings ESP of +0.30% and a Zacks Rank #3.