Akron, Ohio-based FirstEnergy Corp. (FE) is a diversified energy company that operates in the utility sector. With a market cap of around $23 billion, it focuses on generating, transmitting, and distributing electricity in the U.S. The company is expected to announce its fiscal Q2 earnings results after the market closes on Tuesday, Jul. 30.
Ahead of the event, analysts expect the utility firm to report a profit of $0.58 per share, up 23.4% from $0.47 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in each of the past four quarters. In the most recent quarter, the company reported an EPS of $0.55, exceeding estimates by a 3.8% margin.
For fiscal 2024, analysts expect FE to report an EPS of $2.69, up 5.1% from $2.56 in fiscal 2023. Looking ahead to fiscal 2025, EPS is anticipated to grow 7.4% year over year to $2.89.
FE has declined marginally over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 22.5% rise and the S&P 500 Utilities Sector SPDR's (XLU) 2.7% increase over the same period.
On Apr. 25, FirstEnergy’s shares rose marginally after its strong Q1 earnings report and a favorable Q2 earnings outlook. However, the next day, the stock dipped 1.1% due to concerns over a significant rise in interest expenses and reduced heating demand from milder weather.
Analysts' consensus view on FirstEnergy stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, six recommend a "Strong Buy," two suggest a "Moderate Buy," six give a "Hold" rating, and one advises "Moderate Sell." This configuration has remained steady over the past three months.
The average analyst price target for FE is $41.13, suggesting a potential upside of just 3.1% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
