FirstEnergy's Reaffirmed Earnings Outlook and Growth Projections Through 2029
ByAinvest
Saturday, Aug 2, 2025 12:38 am ET1min read
FE--
In the second quarter of 2025, FE reported core earnings of 52 cents per share, beating the Zacks Consensus Estimate of 50 cents by 4% [1]. This was driven by new base rates in Pennsylvania and growth in transmission rate base under formula rate programs, partially offset by milder temperatures reducing customer demand by nearly 3%. GAAP earnings were 46 cents per share, up from 8 cents in the second quarter of 2024.
Revenues totaled $3.38 billion, a 1% miss of the Zacks Consensus Estimate of $3.41 billion, but up 3% from the year-ago quarter. Segmental performance showed revenues from the Integrated segment increasing by 1.6% to $1.68 billion, while the Stand-Alone Transmission segment saw a 3% decrease to $456 million.
Operating expenses were $2.73 billion, down 4.5% from the year-ago quarter, resulting in operating income of $646 million, up 52.7% year-over-year. Interest expense was $299 million, up 4.9% from the prior-year level.
FirstEnergy's 2025 capital investment plan is expected to be $5 billion, with a long-term growth rate of 6-8%. The company's Zacks Rank is #3 (Hold) [1]. The stock's valuation metrics suggest undervaluation, with a P/E ratio of 22.23 and P/B ratio of 1.92.
Reference:
[1] https://finance.yahoo.com/news/firstenergy-q2-earnings-surpass-estimates-124000703.html
FirstEnergy reaffirmed its 2025 earnings outlook at $2.40-$2.60 per share and anticipates 6-8% annual core earnings growth through 2029. The company's $28 billion investment strategy, Energize365, supports this growth. FirstEnergy's financial health is mixed, with 7.3% revenue growth and high gross margin, but a low interest coverage ratio and distress zone Altman Z-Score. The stock's valuation metrics suggest undervaluation, with a P/E ratio of 22.23 and P/B ratio of 1.92.
FirstEnergy Corporation (FE) reaffirmed its 2025 earnings outlook at $2.40 to $2.60 per share, reflecting strong execution on its investment strategy, Energize365. The company expects 6-8% annual core earnings growth through 2029, supported by a $28 billion capital investment plan.In the second quarter of 2025, FE reported core earnings of 52 cents per share, beating the Zacks Consensus Estimate of 50 cents by 4% [1]. This was driven by new base rates in Pennsylvania and growth in transmission rate base under formula rate programs, partially offset by milder temperatures reducing customer demand by nearly 3%. GAAP earnings were 46 cents per share, up from 8 cents in the second quarter of 2024.
Revenues totaled $3.38 billion, a 1% miss of the Zacks Consensus Estimate of $3.41 billion, but up 3% from the year-ago quarter. Segmental performance showed revenues from the Integrated segment increasing by 1.6% to $1.68 billion, while the Stand-Alone Transmission segment saw a 3% decrease to $456 million.
Operating expenses were $2.73 billion, down 4.5% from the year-ago quarter, resulting in operating income of $646 million, up 52.7% year-over-year. Interest expense was $299 million, up 4.9% from the prior-year level.
FirstEnergy's 2025 capital investment plan is expected to be $5 billion, with a long-term growth rate of 6-8%. The company's Zacks Rank is #3 (Hold) [1]. The stock's valuation metrics suggest undervaluation, with a P/E ratio of 22.23 and P/B ratio of 1.92.
Reference:
[1] https://finance.yahoo.com/news/firstenergy-q2-earnings-surpass-estimates-124000703.html
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet