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FirstEnergy (FE) Beats on Q3 Earnings and Revenue

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FirstEnergy Corp. (FE - Free Report) is a diversified energy company. Through its subsidiaries and affiliates, the company engages in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services.

FirstEnergy’s efforts to expand its regulated generation mix have lent stability to the company’s earnings trajectory. The last few years saw the company successfully broadening its regulated operations. 

However, FirstEnergy’s generation, transmission and distribution facilities are subject to risks associated with the breakdown or failure of equipment or processes due to an aging infrastructure, fuel supply or transportation disruptions, accidents and labor disputes or work stoppages by employees. The company will face operational difficulties if any of the above situations arises.

Estimate Trend & Surprise History

Investors should note that the third quarter Zacks Consensus Estimate for earnings of 76 cents per share has increased by 7% over the last 60 days.

Coming to the earnings surprise, FirstEnergy has surpassed the Zacks Consensus Estimate in three out of the last four quarters, resulting in a positive average surprise of 5.93%.

FIRSTENERGY CP Price and EPS Surprise

FIRSTENERGY CP Price and EPS Surprise | FIRSTENERGY CP Quote

Zacks Rank: Currently, FirstEnergy has a Zacks Rank #3 (Hold) but that could change following its third quarter 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the just-released announcement below:

Earnings: FirstEnergy’s third-quarter earnings beat expectation. While our consensus called for an EPS of 76 cents, the company reported EPS of 90 cents.

Revenue: The company posted revenue of $3.9 billion, topping the Zacks Consensus Estimate of $3.8 billion.

Stock Price: It would be interesting to see how the market reacts to the positive earnings surprise during the trading session today.

Check back later for our full write up on this FE earnings report later!


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