The 10-second takeaway
For the quarter ended June 30 (Q2), FirstEnergy beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share grew.
Gross margins shrank, operating margins increased, net margins increased.
FirstEnergy recorded revenue of $3.90 billion. The four analysts polled by S&P Capital IQ foresaw a top line of $3.58 billion on the same basis. GAAP reported sales were 1.9% lower than the prior-year quarter's $3.95 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.60. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.65 per share. GAAP EPS of $0.45 for Q2 were 7.1% higher than the prior-year quarter's $0.42 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 51.6%, 200 basis points worse than the prior-year quarter. Operating margin was 14.4%, 110 basis points better than the prior-year quarter. Net margin was 4.8%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.33 billion. On the bottom line, the average EPS estimate is $1.17.
Next year's average estimate for revenue is $16.50 billion. The average EPS estimate is $3.40.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 369 members out of 390 rating the stock outperform, and 21 members rating it underperform. Among 82 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give FirstEnergy a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FirstEnergy is outperform, with an average price target of $49.47.
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