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FirstEnergy (FE) to Report Q3 Earnings: What's in the Offing?

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FirstEnergy Corporation (FE - Free Report) is slated to release third-quarter 2022 results on Oct 25 after market close. The firm’s earnings are on par with estimates in the last reported quarter.

Let’s see how things are shaping up before the upcoming earnings announcement.

Factors to Consider

FirstEnergy’s third-quarter earnings are likely to have benefited from stable demand from the residential, commercial and industrial groups, reflecting a recovery from the pandemic conditions.

The third-quarter earnings are also expected to have benefited from the ongoing Energizing the Future capital investment program, transformational activities and customer-focused initiatives.

However, the increase in shares outstanding compared with the previous year’s period is expected to dilute earnings per share.

Expectations

FirstEnergy expects third-quarter earnings in the range of 70-80 cents per share. The Zacks Consensus Estimate for third-quarter earnings is pegged at 77 cents per share, which indicates a decline of 6.1% from the year-ago reported figure.

The Zacks Consensus Estimate for third-quarter sales stands at $3.18 billion, suggesting growth of 2.2% from the year-ago reported figure.

What Our Quantitative Model Predicts

Our proven model predicts a likely earnings beat for FE this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is 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: FirstEnergy has an Earnings ESP of +3.45%. 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 #2 (Buy).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Other Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to beat earnings this reporting cycle.

NextEra Energy (NEE - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Oct 28 before market open. NextEra Energy has an Earnings ESP of +1.91% and carries a Zacks Rank #2 at present. NEE’s long-term (three- to five-year) earnings growth is projected at 9.66%.

WEC Energy (WEC - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov 1 before market open. WEC Energy has an Earnings ESP of +4.41% and carries a Zacks Rank #2 at present. WEC’s long-term earnings growth is projected at 6.1%.

Dominion Energy (D - Free Report) is likely to come up with an earnings beat when it reports third-quarter results on Nov 4 before market open. Dominion Energy has an Earnings ESP of +4.59% and carries a Zacks Rank #2 at present. D’s long-term earnings growth is projected at 6.3%.

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

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