FirstEnergy Corp., headquartered in Akron, Ohio, focuses on the generation, distribution, and transmission of electricity across the United States. The company, with a market capitalization of $23.8 billion, operates a variety of energy sources, including coal-fired, nuclear, hydroelectric, wind, and solar power facilities. It provides electricity to customers in several states: Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York.
Over the last year, FirstEnergy’s stock performance has been modest compared to the market. In the past 52 weeks, shares have increased by 3.9%, while the S&P 500 Index saw a more robust gain of 12.7%. However, when looking at year-to-date figures, FirstEnergy’s stock has risen by 3.7%, surpassing the slight increase of the S&P 500.
Focusing on sector performance, FirstEnergy has also fallen short compared to the Utilities Select Sector SPDR Fund (XLU), which rose by 11.8% over the past year and 5.2% on a year-to-date basis.
Following the release of its first-quarter earnings on April 23, FirstEnergy’s shares dipped slightly, even though the company reported better-than-expected results. The revenue of $3.8 billion and adjusted earnings per share (EPS) of $0.67 both exceeded analysts’ forecasts. The revenue marked a 14.5% increase year-over-year, while core earnings saw a remarkable 36.7% improvement compared to the same quarter last year. Factors benefiting the company included updated base rates in Pennsylvania, West Virginia, and New Jersey, decreased financing costs, and typical demand driven by weather patterns.
FirstEnergy has maintained its fiscal 2025 core earnings guidance, projecting a range of $2.40 to $2.60 per share. It also aims for a compound annual growth rate for core earnings between 6% and 8% from 2025 through 2029.
Looking ahead to the current fiscal year ending in December, analysts anticipate a 3% decline in FirstEnergy’s EPS compared to the previous year, predicting a figure of $2.55. The company’s track record for earnings surprises has been inconsistent; it either exceeded or met analysts’ expectations in two of the last four quarters, while two quarters saw it fall short.
A consensus rating among 16 analysts who follow FirstEnergy indicates a “Moderate Buy.” This assessment is based on six “Strong Buy” recommendations, one “Moderate Buy,” and nine “Hold” ratings. The consensus appears stable over the last three months.
As of April 28, Mizuho Financial Group maintained a “Neutral” rating on FirstEnergy, while adjusting its price target to $43, suggesting a potential upside of 4.3% from current levels. The average price target set by analysts stands at $45.21, representing a 9.7% premium over FirstEnergy’s current share price. Notably, the highest target price from analysts is $50, indicating an upside potential of 21.3% from today’s valuations.
It’s important to take into account that the financial landscape is constantly evolving, and these figures are subject to change. Investors should perform their due diligence and consider both current market conditions and future growth opportunities when evaluating FirstEnergy Corp.
