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FirstEnergy (FE) to Report Q2 Earnings: What's in the Cards?
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FirstEnergy Corporation (FE - Free Report) is scheduled to release second-quarter 2023 results on Aug 1, after market close. The company had delivered a negative earnings surprise of 1.7% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
During the second quarter, FirstEnergy started a project to minimize service interruptions by strengthening its underground electrical network. The project also involves installation of fresh underground transformers and safety equipment that will further increase the reliability of FE’s services and reduce the duration of power outages.
The company’s subsidiary, American Transmission Systems, upgraded a high-voltage transmission line in Clark County, OH, during the quarter. This is expected to further strengthen the regional transmission system and improve service reliability for about 35,000 consumers in the area.
Such developments are likely to have boosted FE’s earnings in the to-be-reported quarter as it will ensure 24x7 power supply to its customers.
Other operating and maintenance expenses and network transmission expenses are expected to have declined due to regular maintenance and upgrading of the transmission lines. This is likely to have a positive impact on the company’s quarterly results.
Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at 46 cents per share, indicating a year-over-year decrease of 13.2%.
The consensus mark for revenues is pinned at $3 billion, implying a 6.4% improvement year over year.
Our model predicts other operating expenses to decline 8.5% from the year-ago quarter’s reported figure.
Our model predicts total weather-adjusted deliveries of 34,416 thousands megawatt-hour, down 11.5% from the previous quarter’s reported figure. Lower weather-related usage from the residential & commercial group is likely to have reduced overall delivery volumes.
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 odds of an earnings beat. That is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Investors may consider the following players from the same industry as they have the right combination of elements to post an earnings beat this reporting cycle.
Public Service Enterprise Group Inc. (PEG - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug 1, before market open. It has an Earnings ESP of +1.94% and a Zacks Rank #2 at present.
PEG’s long-term (three to five years) earnings growth rate is 4.85%. It delivered an average earnings surprise of 4.33% in the last four quarters.
Exelon Corporation (EXC - Free Report) is likely to report an earnings beat when it announces second-quarter results on Aug 2, before market open. It has an Earnings ESP of +0.12% and a Zacks Rank #3 at present.
EXC’s long-term earnings growth rate is 6.3%. It delivered an average earnings surprise of 1.5% in the last four quarters.
Consolidated Edison (ED - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 3, after market close. It has an Earnings ESP of +1.4% and a Zacks Rank #2 at present.
ED’s long-term earnings growth rate is 2%. It delivered an average earnings surprise of 9.5% in the last four quarters.
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FirstEnergy (FE) to Report Q2 Earnings: What's in the Cards?
FirstEnergy Corporation (FE - Free Report) is scheduled to release second-quarter 2023 results on Aug 1, after market close. The company had delivered a negative earnings surprise of 1.7% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
During the second quarter, FirstEnergy started a project to minimize service interruptions by strengthening its underground electrical network. The project also involves installation of fresh underground transformers and safety equipment that will further increase the reliability of FE’s services and reduce the duration of power outages.
The company’s subsidiary, American Transmission Systems, upgraded a high-voltage transmission line in Clark County, OH, during the quarter. This is expected to further strengthen the regional transmission system and improve service reliability for about 35,000 consumers in the area.
Such developments are likely to have boosted FE’s earnings in the to-be-reported quarter as it will ensure 24x7 power supply to its customers.
Other operating and maintenance expenses and network transmission expenses are expected to have declined due to regular maintenance and upgrading of the transmission lines. This is likely to have a positive impact on the company’s quarterly results.
Expectations
The Zacks Consensus Estimate for second-quarter earnings is pegged at 46 cents per share, indicating a year-over-year decrease of 13.2%.
The consensus mark for revenues is pinned at $3 billion, implying a 6.4% improvement year over year.
Our model predicts other operating expenses to decline 8.5% from the year-ago quarter’s reported figure.
Our model predicts total weather-adjusted deliveries of 34,416 thousands megawatt-hour, down 11.5% from the previous quarter’s reported figure. Lower weather-related usage from the residential & commercial group is likely to have reduced overall delivery volumes.
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 odds of an earnings beat. That is not the case here as you will see below.
FirstEnergy Corporation Price and EPS Surprise
FirstEnergy Corporation price-eps-surprise | FirstEnergy Corporation Quote
Earnings ESP: The company’s Earnings ESP is 0.00%.
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 #2. You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Investors may consider the following players from the same industry as they have the right combination of elements to post an earnings beat this reporting cycle.
Public Service Enterprise Group Inc. (PEG - Free Report) is expected to come up with an earnings beat when it reports second-quarter results on Aug 1, before market open. It has an Earnings ESP of +1.94% and a Zacks Rank #2 at present.
PEG’s long-term (three to five years) earnings growth rate is 4.85%. It delivered an average earnings surprise of 4.33% in the last four quarters.
Exelon Corporation (EXC - Free Report) is likely to report an earnings beat when it announces second-quarter results on Aug 2, before market open. It has an Earnings ESP of +0.12% and a Zacks Rank #3 at present.
EXC’s long-term earnings growth rate is 6.3%. It delivered an average earnings surprise of 1.5% in the last four quarters.
Consolidated Edison (ED - Free Report) is likely to come up with an earnings beat when it reports second-quarter results on Aug 3, after market close. It has an Earnings ESP of +1.4% and a Zacks Rank #2 at present.
ED’s long-term earnings growth rate is 2%. It delivered an average earnings surprise of 9.5% in the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.