Analysts Estimate FirstEnergy (FE) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for FirstEnergy despite higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - FirstEnergy is expected to report quarterly earnings of $0.53 per share, reflecting a year-over-year decrease of 5.4%, while revenues are projected to be $3.43 billion, an increase of 4.7% from the previous year [3]. - The consensus EPS estimate has been revised 0.79% higher in the last 30 days, indicating a slight positive adjustment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for FirstEnergy is lower than the consensus estimate, resulting in an Earnings ESP of -10.80%, indicating bearish sentiment among analysts [12]. - The stock currently holds a Zacks Rank of 3 (Hold), complicating predictions of an earnings beat [12]. Historical Performance - In the last reported quarter, FirstEnergy exceeded the consensus EPS estimate of $0.60 by delivering earnings of $0.67, resulting in a surprise of +11.67% [13]. - Over the past four quarters, the company has only surpassed consensus EPS estimates once [14]. Industry Comparison - Portland General Electric, another player in the utility sector, is expected to report earnings of $0.65 per share, also reflecting a year-over-year decline of 5.8%, with revenues projected at $775.32 million, up 2.3% [18][19]. - Similar to FirstEnergy, Portland General Electric has a Zacks Rank of 3 and an Earnings ESP of -1.03%, making it difficult to predict an earnings beat [20].