FirstEnergy(US:FE) ZACKS·2025-11-21 17:31Core Insights - FirstEnergy reported Q3 2025 operating earnings of 83 cents per share, exceeding the Zacks Consensus Estimate of 76 cents by 9.2% and showing an increase from 76 cents in the same quarter last year [3][4] - Total operating revenues reached $4.14 billion, surpassing the Zacks Consensus Estimate of $3.91 billion by 5.8% and reflecting an 11.2% increase from $3.72 billion in the prior year [5] - The company has narrowed its 2025 core EPS guidance to a range of $2.50-$2.56, aligning with the Zacks Consensus Estimate of $2.53 per share [8] Financial Performance - Core earnings growth was driven by new base rates in Pennsylvania and increased transmission rate base, partially offset by higher planned operating expenses [4] - Total operating expenses rose to $3.3 billion, up 10.5% from $3 billion in the previous year, while operating income increased to $830 million, a 14.2% rise from $727 million [7] - Interest expenses also increased to $312 million, reflecting a 13% rise from $276 million in the prior year [7] Segment Performance - Distribution segment revenues totaled $2.02 billion, up 11.2% year-over-year [6] - Integrated segment revenues amounted to $1.65 billion, a 13.8% increase from $1.45 billion in the previous year [6] - Stand-Alone Transmission segment revenues reached $488 million, up 2.7% from the prior year [6] Capital Investment and Guidance - FirstEnergy has increased its 2025 capital investment plan to $5.5 billion, with over half allocated to strengthening its Transmission operations [9] - The company anticipates a long-term EPS growth rate of 6-8% and has a capital investment plan of $28 billion for the 2025-2029 period [8] Market Reaction and Outlook - Following the earnings release, there has been a downward trend in estimates for the stock, indicating a shift in market sentiment [11] - Despite the downward estimate revisions, FirstEnergy holds a Zacks Rank 2 (Buy), suggesting expectations for above-average returns in the coming months [13]