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What's in the Cards for FirstEnergy (FE) This Earnings Season?

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FirstEnergy Corporation (FE - Free Report) is scheduled to release first-quarter 2024 results on Apr 25, after market close. The company delivered an earnings surprise of 3.3% in the last reported quarter.

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Factors to Consider

FirstEnergy’s first-quarter earnings are expected to have benefited from its ongoing “Energize365” initiative, which is focused on installing advanced equipment and technologies that will strengthen and modernize its transmission and distribution infrastructure.

In January 2024, FE’s first solar site (out of five) went online at Fort Martin Power Station in Maidsville, WV, and a surcharge was levied the same month. This is expected to have boosted the company’s earnings in the to-be-reported quarter.

During the fourth quarter of 2023, a new distribution base rate increase case became effective in the Maryland service area. This is likely to have positively impacted the first-quarter results.

Q1 Expectations

The Zacks Consensus Estimate for first-quarter earnings is pegged at 54 cents per share, indicating a year-over-year decrease of 10%.

The Zacks Consensus Estimate for revenues is pinned at $3.36 billion, implying a 3.9% improvement year over year.

The Zacks Consensus Estimate for total electric distribution deliveries is pinned at 37,785 megawatt-hours, up 4.7% 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 and EPS Surprise

FirstEnergy Corporation price-eps-surprise | FirstEnergy Corporation Quote

Earnings ESP: The company’s Earnings ESP is -2.80%. 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 these have the right combination of elements to post an earnings beat this reporting cycle.

Entergy Corporation (ETR - Free Report) is likely to come up with an earnings beat when it reports first-quarter earnings on Apr 24. It has an Earnings ESP of +5.71% and a Zacks Rank #3 at present.

ETR’s long-term (three to five years) earnings growth rate is 7.01%. The Zacks Consensus Estimate for first-quarter 2024 earnings has moved up 5.3% in the past 60 days.

PPL Corporation (PPL - Free Report) is likely to come up with an earnings beat when it reports first-quarter 2024 earnings on May 1. It has an Earnings ESP of +0.98% and a Zacks Rank #3 at present.

PPL’s long-term earnings growth rate is 6.5%. The Zacks Consensus Estimate for first-quarter 2024 earnings has moved up 2% in the past 60 days.

Exelon Corporation (EXC - Free Report) is likely to come up with an earnings beat when it reports first-quarter earnings on May 2. It has an Earnings ESP of +1.41% and a Zacks Rank #3 at present.

EXC’s long-term earnings growth rate is 5.69%. The Zacks Consensus Estimate for first-quarter 2024 earnings has moved up 1.4% in the past 30 days.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

 

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