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FirstEnergy Corporation FE is scheduled to release first-quarter 2023 financial results on Apr 27, after market close. The company delivered a negative earnings surprise of 5.7% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors to Consider
During fourth-quarter 2022, FirstEnergy had completed its service reliability projects. This is expected to have improved electric service and minimized the impact of power outages for thousands of customers. Such developments are likely to have contributed to the company’s first-quarter earnings.
Return from regulated investments, and lower operation and maintenance expenses are also expected to positively impact FE’s results in the to-be-reported quarter.
Expectations
The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 62 cents per share, indicating a year-over-year increase of 3.3%.
The same for revenues is pegged at $3.17 billion, implying a 6.1% improvement year over year.
The Zacks model predicts total regulated distribution to contribute 86.9% to total revenues in the first quarter. Our model predicts net income to improve 7% on a year-over-year basis.
Quantitative Model Predicts
Our proven model does not conclusively predict an earnings beat for FirstEnergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here as you will see below.
FirstEnergy Corporation Price and EPS Surprise
FirstEnergy Corporation price-eps-surprise | FirstEnergy Corporation Quote
Earnings ESP: The company’s Earnings ESP is -3.14%. 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 #3.
Stocks to Consider
Investors may consider the following players from the same industry that have the right combination of elements to post an earnings beat for the to-be-reported quarter.
Portland General Electric POR is likely to come up with an earnings beat when it reports first-quarter results on Apr 28, before market open. It has an Earnings ESP of +5.33% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
POR’s long-term (three to five years) earnings growth rate is pegged at 6.08%. It delivered an average earnings surprise of 4.67% in the last four quarters.
Edison International EIX is likely to come up with an earnings beat when it reports first-quarter results on May 2, after market close. It has an Earnings ESP of +0.24% and a Zacks Rank #3 at present.
EIX’s long-term earnings growth rate is pegged at 2.97%. The Zacks Consensus Estimate for 2023 earnings is pegged at $4.74 per share, implying a year-over-year improvement of 2.6%.
Fortis FTS is likely to come up with an earnings beat when it reports first-quarter results on May 3, before market open. It has an Earnings ESP of +1.11% and a Zacks Rank #3 at present.
FTS’s long-term earnings growth rate is 5.57%. The Zacks Consensus Estimate for 2023 earnings is pegged at $2.18 per share, indicating a year-over-year increase of 1.87%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Edison International (EIX) : Free Stock Analysis Report
FirstEnergy Corporation (FE) : Free Stock Analysis Report
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Fortis (FTS) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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