FirstEnergy Corp. Third Quarter Earnings on the Horizon

S&P 500 (NYSE:SPY) component FirstEnergy Corp. (NYSE:FE) will unveil its latest earnings on Tuesday, November 1, 2011. FirstEnergy is a diversified energy company that operates through its subsidiaries: OE, CEI, TE, Penn, ATSI, JCP&L, Met-Ed and Penelec.

FirstEnergy Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.23 per share, a decline of 3.9% 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 $1.19. Between one and three months ago, the average estimate moved up. It has risen from $1.22 during the last month. For the year, analysts are projecting profit of $3.35 per share, a decline of 7.5% from last year.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net income of 64 cents per share versus a mean estimate of profit of 72 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $5.35 billion in revenue this quarter, a rise of 45% from the year ago quarter. Analysts are forecasting total revenue of $17.29 billion for the year, a rise of 29.6% from last year’s revenue of $13.34 billion.

Analyst Ratings: Analysts are bullish on this stock with eight analysts rating it as a buy, none rating it as a sell and six rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit fell 31.7% to $181 million (43 cents a share) from $265 million (87 cents a share) the year earlier, missing analyst expectations. Revenue rose 29.8% to $4.06 billion from $3.13 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 8.4% in the first quarter from the year earlier, climbed 8.9% in the fourth quarter of the last fiscal year from the year-ago quarter 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 36.3% over the past four quarters. The quarter hit the hardest was the first 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 August 2, 2011 to October 26, 2011, the stock price had risen $1.08 (2.5%) from $43.57 to $44.65. 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% (+$1.47) 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% (-$1.75) over that span. Shares are up $9.06 (+25.5%) year to date.

(Source: Xignite Financials)

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