The 10-second takeaway
For the quarter ended Sep. 30 (Q3), FirstEnergy missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins contracted across the board.
FirstEnergy reported revenue of $4.30 billion. The four analysts polled by S&P Capital IQ expected to see net sales of $4.66 billion on the same basis. GAAP reported sales were 5.9% lower than the prior-year quarter's $4.58 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 $1.11. The 14 earnings estimates compiled by S&P Capital IQ predicted $1.07 per share. GAAP EPS of $1.01 for Q3 were 17% lower than the prior-year quarter's $1.22 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 53.4%, 370 basis points worse than the prior-year quarter. Operating margin was 21.0%, 150 basis points worse than the prior-year quarter. Net margin was 9.9%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $4.30 billion. On the bottom line, the average EPS estimate is $0.84.
Next year's average estimate for revenue is $16.81 billion. The average EPS estimate is $3.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 367 members out of 387 rating the stock outperform, and 20 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give FirstEnergy a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FirstEnergy is hold, with an average price target of $48.13.
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