FirstEnergy (NYSE:FE) Issues Earnings Results

Key Points

• FirstEnergy reported quarterly earnings of $0.83 per share, exceeding estimates by $0.12 and achieving a return on equity of 11.31% and a net margin of 9.31%.
• The company declared a quarterly dividend of $0.445, amounting to an annualized dividend yield of 3.8%, with the ex-dividend date set for November 7th.
• Equities analysts have varied opinions on FirstEnergy, with several increasing their price targets and ratings, reflecting a consensus hold rating and an average target price of $47.17.

FirstEnergy (NYSE:FE - Get Free Report) announced its quarterly earnings results on Wednesday. The utilities provider reported $0.83 earnings per share for the quarter, beating analysts' consensus estimates of $0.76 by $0.07, Zacks reports. The business had revenue of $4.10 billion for the quarter, compared to the consensus estimate of $3.94 billion. FirstEnergy had a net margin of 9.31% and a return on equity of 11.31%. FirstEnergy's revenue for the quarter was up 10.8% on a year-over-year basis. During the same period last year, the company posted $0.85 EPS. FirstEnergy updated its FY 2025 guidance to 2.500-2.560 EPS.

FirstEnergy Stock Performance

NYSE:FE opened at $47.29 on Thursday. The stock's 50-day moving average is $44.68 and its 200-day moving average is $42.49. The company has a current ratio of 0.61, a quick ratio of 0.51 and a debt-to-equity ratio of 1.68. The stock has a market cap of $27.30 billion, a P/E ratio of 20.92, a price-to-earnings-growth ratio of 3.18 and a beta of 0.52. FirstEnergy has a 1-year low of $37.58 and a 1-year high of $47.99.

FirstEnergy Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Monday, December 1st. Stockholders of record on Friday, November 7th will be issued a dividend of $0.445 per share. This represents a $1.78 annualized dividend and a dividend yield of 3.8%. The ex-dividend date is Friday, November 7th. FirstEnergy's payout ratio is 78.76%.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on FE shares. Barclays raised shares of FirstEnergy from an "equal weight" rating to an "overweight" rating and raised their target price for the company from $43.00 to $49.00 in a research report on Monday, August 25th. Morgan Stanley raised their target price on shares of FirstEnergy from $47.00 to $50.00 and gave the company an "overweight" rating in a research note on Tuesday. Scotiabank reissued an "outperform" rating on shares of FirstEnergy in a research note on Wednesday, October 8th. Weiss Ratings reissued a "buy (b)" rating on shares of FirstEnergy in a research note on Wednesday, October 8th. Finally, Mizuho raised their target price on shares of FirstEnergy from $43.00 to $45.00 and gave the company a "neutral" rating in a research note on Friday, August 1st. Seven research analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $47.17.

Institutional Investors Weigh In On FirstEnergy

Several institutional investors have recently bought and sold shares of the stock. Raymond James Financial Inc. grew its stake in FirstEnergy by 47.7% in the 2nd quarter. Raymond James Financial Inc. now owns 1,779,517 shares of the utilities provider's stock valued at $71,643,000 after purchasing an additional 574,396 shares during the period. AQR Capital Management LLC raised its holdings in shares of FirstEnergy by 58.4% in the 2nd quarter. AQR Capital Management LLC now owns 413,295 shares of the utilities provider's stock valued at $16,453,000 after acquiring an additional 152,299 shares in the last quarter. HRT Financial LP bought a new position in shares of FirstEnergy during the 2nd quarter valued at about $5,570,000. Brevan Howard Capital Management LP bought a new position in FirstEnergy during the 2nd quarter worth approximately $4,037,000. Finally, Quantinno Capital Management LP grew its position in FirstEnergy by 64.2% during the 2nd quarter. Quantinno Capital Management LP now owns 204,700 shares of the utilities provider's stock worth $8,241,000 after acquiring an additional 80,034 shares during the last quarter. Institutional investors own 89.41% of the company's stock.

About FirstEnergy

FirstEnergy Corp., through its subsidiaries, generates, transmits, and distributes electricity in the United States. It operates through Regulated Distribution and Regulated Transmission segments. The company owns and operates coal-fired, nuclear, hydroelectric, wind, and solar power generating facilities.