S&P 500 (NYSE:SPY) component FirstEnergy Corp. (NYSE:FE) will unveil its latest earnings on Tuesday, August 2, 2011. FirstEnergy Corp. is a diversified energy company that operates through its subsidiaries: OE, CEI, TE, Penn, ATSI, JCP&L, Met-Ed and Penelec. American Electric Power Company, Inc. Quarterly Earnings Sneak Peek>>
FirstEnergy Corp. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 75 cents per share, a decline of 8.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 56 cents. Between one and three months ago, the average estimate moved up, but has dropped from 76 cents during the last month. For the year, analysts are projecting profit of $3.29 per share, a decline of 9.1% from last year.
Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net income of 68 cents per share against an estimate of profit of 74 cents per share. The quarter before that, it missed expectations by 7 cents.
Wall St. Revenue Expectations: On average, analysts predict $3.92 billion in revenue this quarter, a rise of 25.2% from the year ago quarter. Analysts are forecasting total revenue of $18.1 billion for the year, a rise of 35.7% from last year’s revenue of $13.34 billion.
Analyst Ratings: Analysts seem relatively indifferent about FirstEnergy with eight of 15 analysts surveyed maintaining a hold rating.
Revenue has now gone up for three straight quarters. In first quarter, revenue rose 8.4% to $3.58 billion while the figure rose 8.9% in the fourth quarter of the last fiscal year from the year earlier and 8.4% in the third quarter of the last fiscal year.
While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 37.4% over the past four quarters. The quarter hit the hardest was the most recent quarter, that saw a 67.7% drop.
Competitors to Watch: American Electric Power Co., Inc. (NYSE:AEP), Consolidated Edison, Inc. (NYSE:ED), CH Energy Group, Inc. (NYSE:CHG), Public Service Enterprise Group Inc. (NYSE:PEG), NextEra Energy, Inc. (NYSE:NEE), PPL Corporation (NYSE:PPL), The Southern Company (NYSE:SO), Pepco Holdings, Inc. (NYSE:POM), Duke Energy Corporation (NYSE:DUK), and Exelon Corporation (NYSE:EXC).
Stock Price Performance: During May 2, 2011 to July 27, 2011, the stock price had risen $6.03 (15.4%) from $39.10 to $45.13. The stock price saw one of its best stretches over the last year between December 15, 2010 and December 28, 2010 when shares rose for nine-straight days, rising 4.3% (+$1.49) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 4% (-$1.78) over that span. Shares are up $9.09 (+25.2%) year to date.
(Source: Xignite Financials)