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FirstEnergy to Release Q3 Earnings: Here's What You Need to Know

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FirstEnergy Corporation (FE - Free Report) is scheduled to release third-quarter 2024 results on Oct. 29, after market close. The company’s earnings were in line with estimates in the last reported quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

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

Factors That Might Have Impacted FE’s Q3 Performance

During the third quarter, FirstEnergy’s subsidiary FirstEnergy Pennsylvania Electric Company energized a new transformer at its substation near Third and Willow Streets in Lebanon, PA. This initiative is expected to have enhanced service reliability and bolstered the company’s bottom line.

In July 2024, the company received the remaining $1.2 billion in proceeds from the $3.5 billion sale of a 30% ownership interest in its FirstEnergy Transmission, LLC. The proceeds are expected to have been consistent with the company's plan to further transform its balance sheet and support its five-year $26 billion “Energize365” grid investment program. This should have aided FE’s overall performance in the to-be-reported quarter.

However, unfavorable weather patterns, including heavy rainfall, severe storms flooding, along with hurricanes, affected some parts of FirstEnergy’s service territories during the third quarter. Customers might have experienced outages due to FE’s services being affected in those locations. These interruptions are likely to have had a negative impact on the company’s quarterly revenues.

Q3 Expectations

The Zacks Consensus Estimate for earnings is pegged at 90 cents per share, indicating a year-over-year increase of 2.3%.

The Zacks Consensus Estimate for revenues is pinned at $3.58 billion, implying a 2.7% improvement year over year.

The Zacks Consensus Estimate for total electric distribution deliveries is pinned at 38,974.5 megawatt-hours, up 0.5% from the figure registered in the year-ago quarter.

What Our Quantitative Model Predicts

Our proven model predicts 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, which is the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is +0.34%. 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 price-eps-surprise | FirstEnergy Corporation Quote

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.

Xcel Energy (XEL - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Oct. 31. It has an Earnings ESP of +1.03% and a Zacks Rank #2 at present.

The Zacks Consensus Estimate for earnings is pinned at $1.30 per share. It delivered an average earnings surprise of 0.7% in the past four quarters.

The AES Corporation (AES - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Oct. 31. It has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for third-quarter earnings is pinned at 60 cents per share. The Zacks Consensus Estimate for sales is pegged at $3.62 billion, which implies a year-over-year increase of 5.4%.

Pampa Energia S.A. (PAM - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov. 6. It has an Earnings ESP of +18.36% and a Zacks Rank #3 at present.

The Zacks Consensus Estimate for earnings has moved up 52.5% in the past 90 days. The Zacks Consensus Estimate for sales is pegged at $546.05 million, which implies a year-over-year increase of 15.2%.

 

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