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FirstEnergy (FE) to Report Q3 Earnings: What's in the Cards?
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FirstEnergy Corporation (FE - Free Report) is scheduled to release third-quarter 2023 results on Oct 26, after market close. The company had delivered an earnings surprise of 2.2% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
In June 2023, FirstEnergy’s subsidiary, American Transmission Systems, upgraded a high-voltage transmission line in Clark County, OH. Construction work on the $20-million project started in August 2022 and ended in June.
During the second quarter of 2023, FirstEnergy started a project to minimize service interruptions by strengthening its underground electrical network. The project also involves the 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.
FE’s third-quarter earnings are expected to have gained from positive operating expenses due to increased productivity and lower bad debt expense.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at 86 cents per share, indicating a year-over-year increase of 8.9%.
The consensus mark for revenues is pinned at $3.63 billion, implying a 4.6% improvement year over year.
Owing to improved service reliability, our model predicts total weather-adjusted electric distribution of 38,915 thousand megawatt-hour, up 0.5% year over year.
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 -1.62%. 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.
Fortis (FTS - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Oct 27, before market open. It has an Earnings ESP of +1.25% and a Zacks Rank #3 at present.
FTS’ long-term (three to five years) earnings growth rate is 5.01%. It delivered an average earnings surprise of 4.5% in the last four quarters.
Entergy (ETR - Free Report) is expected to come up with an earnings beat when it reports third-quarter results on Nov 1, before market open. It has an Earnings ESP of +0.85% and a Zacks Rank #3 at present.
ETR’s long-term earnings growth rate is 5.83%. It delivered an average earnings surprise of 3.4% in the last four quarters.
Pinnacle West Capital Corp. (PNW - Free Report) is likely to report an earnings beat when it announces third-quarter results on Nov 2, before market open. It has an Earnings ESP of +0.15% and a Zacks Rank #2 at present.
PNW’s long-term earnings growth rate is 5.55%. The Zacks Consensus Estimate for earnings is pegged at $3.27 per share, indicating a year-over-year increase of 13.5%.
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FirstEnergy (FE) to Report Q3 Earnings: What's in the Cards?
FirstEnergy Corporation (FE - Free Report) is scheduled to release third-quarter 2023 results on Oct 26, after market close. The company had delivered an earnings surprise of 2.2% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Note
In June 2023, FirstEnergy’s subsidiary, American Transmission Systems, upgraded a high-voltage transmission line in Clark County, OH. Construction work on the $20-million project started in August 2022 and ended in June.
During the second quarter of 2023, FirstEnergy started a project to minimize service interruptions by strengthening its underground electrical network. The project also involves the 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.
FE’s third-quarter earnings are expected to have gained from positive operating expenses due to increased productivity and lower bad debt expense.
Q3 Expectations
The Zacks Consensus Estimate for third-quarter earnings is pegged at 86 cents per share, indicating a year-over-year increase of 8.9%.
The consensus mark for revenues is pinned at $3.63 billion, implying a 4.6% improvement year over year.
Owing to improved service reliability, our model predicts total weather-adjusted electric distribution of 38,915 thousand megawatt-hour, up 0.5% year over year.
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 -1.62%.
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. 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.
Fortis (FTS - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Oct 27, before market open. It has an Earnings ESP of +1.25% and a Zacks Rank #3 at present.
FTS’ long-term (three to five years) earnings growth rate is 5.01%. It delivered an average earnings surprise of 4.5% in the last four quarters.
Entergy (ETR - Free Report) is expected to come up with an earnings beat when it reports third-quarter results on Nov 1, before market open. It has an Earnings ESP of +0.85% and a Zacks Rank #3 at present.
ETR’s long-term earnings growth rate is 5.83%. It delivered an average earnings surprise of 3.4% in the last four quarters.
Pinnacle West Capital Corp. (PNW - Free Report) is likely to report an earnings beat when it announces third-quarter results on Nov 2, before market open. It has an Earnings ESP of +0.15% and a Zacks Rank #2 at present.
PNW’s long-term earnings growth rate is 5.55%. The Zacks Consensus Estimate for earnings is pegged at $3.27 per share, indicating a year-over-year increase of 13.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.