Earnings Preview: FirstEnergy (FE) Q4 Earnings Expected to Decline

Core Viewpoint - Wall Street anticipates a year-over-year decline in FirstEnergy's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - FirstEnergy is expected to report quarterly earnings of $0.52 per share, reflecting a year-over-year decrease of 22.4% [3]. - Revenue projections stand at $3.24 billion, which is a 2% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from analysts [4]. - The Most Accurate Estimate for FirstEnergy is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.26%, suggesting a bearish sentiment among analysts [11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, but its predictive power is stronger for positive readings [8][9]. - FirstEnergy's current Zacks Rank is 2 (Buy), but the negative Earnings ESP complicates predictions of an earnings beat [11]. Historical Performance - In the last reported quarter, FirstEnergy exceeded earnings expectations by delivering $0.83 per share against an expected $0.76, resulting in a surprise of +9.21% [12]. - Over the past four quarters, FirstEnergy has beaten consensus EPS estimates three times [13]. Industry Comparison - Eversource Energy, another player in the utility sector, is expected to report earnings of $1.11 per share, marking a year-over-year increase of 9.9% [17]. - Eversource's revenues are projected at $3.53 billion, up 18.9% from the previous year, with a positive Earnings ESP of +1.27% and a Zacks Rank of 2, indicating a higher likelihood of beating estimates [18][19].