What's in the Offing for FirstEnergy's (FE) Q1 Earnings?

FirstEnergy Corporation FE is expected to release first-quarter 2021 results on Apr 22. The company witnessed a negative trailing four-quarter earnings surprise of 6.06%, on average.

Let’s focus on the factors that might have impacted its March-quarter performance.

Factors to Consider

FirstEnergy’s first-quarter results are expected to reflect improving demand from Commercial and Industrial group, and the residential space. Despite the ongoing pandemic, the utility made consistent efforts in enhancing its transmission lines to supply uninterrupted power. The company is expected to have benefited from $550 million in transmission rate base growth. FirstEnergy’s earnings are expected to have gained from its initiatives to lower operating costs.

Q1 Expectations

The company expects first-quarter 2021 earnings in the range of 62-72 cents per share. The Zacks Consensus Estimate for the same is pegged at 74 cents, which indicates a 12.12% rise from the year-ago period’s reported figure. The Zacks Consensus Estimate for first-quarter sales stands at $2.9 billion, suggesting growth of 7.07% from the year-ago period’s reported number.

What Our Quantitative Model Predicts

Our proven model does not 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 chances of an earnings beat but that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

FirstEnergy Corporation Price and EPS Surprise

FirstEnergy Corporation Price and EPS Surprise

FirstEnergy Corporation price-eps-surprise | FirstEnergy Corporation Quote

Earnings ESP: FirstEnergy has an Earnings ESP of 0.00%. 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 #4 (Sell).

Stocks to Consider

Investors can consider the following players from the same sector that have the right combination of elements to beat on earnings this reporting cycle.

DTE Energy Company DTE is set to release first-quarter 2021 results on Apr 27. It has an Earnings ESP of +0.67% and is Zacks #3 Ranked, presently.

Edison International EIX is set to release first-quarter 2021 results on Apr 27. It has an Earnings ESP of +11.65% and is currently a #3 Ranked player.

CenterPoint Energy, Inc. CNP is set to release first-quarter 2021 results on May 6. It has an Earnings ESP of +13.97% and a Zacks Rank of 3, presently.

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Edison International (EIX) : Free Stock Analysis Report

FirstEnergy Corporation (FE) : Free Stock Analysis Report

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DTE Energy Company (DTE) : Free Stock Analysis Report

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