Back to top

Image: Bigstock

FirstEnergy (FE) Up 0.1% Since Last Earnings Report: Can It Continue?

Read MoreHide Full Article

It has been about a month since the last earnings report for FirstEnergy (FE - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is FirstEnergy due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for FirstEnergy Corporation before we dive into how investors and analysts have reacted as of late.

FirstEnergy Q3 Earnings & Sales Beat Estimates, Capital Spending Up

FirstEnergy reported third-quarter 2025 operating earnings of 83 cents per share, which beat the Zacks Consensus Estimate of 76 cents by 9.2%. In the year-ago quarter, the company reported earnings of 76 cents per share.

The year-over-year increase in core earnings was due to the impact of new base rates in Pennsylvania and growth in transmission rate base under formula rate programs. These drivers were partially offset by higher planned operating expenses that were approved with new base rates and work that was accelerated into 2025.

The company generated GAAP earnings of 76 cents per share compared with 73 cents in the third quarter of 2024.

Total Revenues of FE

Operating revenues of $4.14 billion surpassed the Zacks Consensus Estimate of $3.91 billion by 5.8%. The top line increased 11.2% from $3.72 billion recorded in the year-ago quarter.

FE’s Segmental Performance

Distribution: Revenues from this segment totaled $2.02 billion, up 11.2% from the prior-year quarter’s level.

Integrated: Revenues from this segment amounted to $1.65 billion, up 13.8% from $1.45 billion in the year-ago quarter.

Stand-Alone Transmission: Revenues from this segment amounted to $488 million, up 2.7% from the prior-year quarter.

Highlights of FE’s Q3 Earnings Release

Total operating expenses were $3.3 billion, up 10.5% from the year-ago quarter’s level of $3 billion.

Operating income totaled $830 million, up 14.2% from the year-ago recorded number of $727 million.

The company reported an interest expense of $312 million, up 13% from the prior-year level of $276 million.

FE’s 2025 Guidance

FirstEnergy narrows its 2025 core earnings per share (EPS) in the range of $2.50- $2.56 from the prior range of $2.40-$2.60. The Zacks Consensus Estimate is pegged at $2.53 per share, which is on par with the midpoint of the company’s guided range.

FirstEnergy expects a long-term EPS growth rate of 6-8%. FE has a capital investment plan of $28 billion for the 2025-2029 period.

The company increased its 2025 capital investment to $5.5 billion from $5 billion, with more than half of the increase to be invested in strengthening its Transmission operation.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in estimates review.

VGM Scores

Currently, FirstEnergy has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Interestingly, FirstEnergy has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


FirstEnergy Corporation (FE) - free report >>

Published in