FirstEnergy Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
FirstEnergy (NYSE: FE) unveils its next round of earnings this Tuesday, November 1, 2011. Here's Benzinga's advanced look at FirstEnergy's third quarter earnings report.
Earnings and Revenue:
Analysts are predicting an EPS reading of $1.23/share and revenues of $5.35 billion. FirstEnergy's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.28/share on revenues of $3.69 billion. We'll have to wait for Tuesday to see if the company reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $0.72 | $0.74 | $0.78 | $1.09 |
| EPS Actual | $0.64 | $0.68 | $0.71 | $1.28 |
Stock Performance:
Shares of FirstEnergy were trading at $44.65 as of October 26, 2011. Shares are up 25.5% year to date. For a full 12 months, the return has risen by 30.8%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
- Long-term shareholders are already enjoying 12-month gains prior to the announcement
Average Stock Rating:
The average rating by analysts is a Moderate Buy. This rating has strengthened over the past three months.
Competitors:
Want to check out the performance of FirstEnergy closest competitors? Take a look at some of the company's peers in the utilities sector.
- American Electric Power Company (NYSE: AEP): Hold with a $0.73 recent quarter EPS
- CH Energy Group (NYSE: CHG): Hold with a $0.38 recent quarter EPS
- Duke Energy (NYSE: DUK): Moderate Sell with a $0.33 recent quarter EPS
- Consolidated Edison (NYSE: ED): Moderate Sell with a $0.57 recent quarter EPS
The utility-electric power company's industry has seen price/earnings growth of 28% during the current fiscal year.
Finally, a description of the company's main areas of operation: FirstEnergy is a diversified energy company that operates through its subsidiaries: OE, CEI, TE, Penn, ATSI, JCP&L, Met-Ed and Penelec.
Take Action:
There is your peek into FirstEnergy's upcoming earnings numbers, including some competitors to watch around the time of the announcement. Check back in with us after the announcement for a full recap. In the meantime, here are some links to explore today.
- To see up-to-date news on FirstEnergy, click here
- To see other trading ideas, click here
- To see other company earnings recaps, click here
