The 10-second takeaway
For the quarter ended March 31 (Q1), FirstEnergy missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share expanded significantly.
Gross margins contracted, operating margins increased, net margins improved.
FirstEnergy logged revenue of $4.10 billion. The three analysts polled by S&P Capital IQ wanted to see revenue of $4.34 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $3.46 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 $0.82. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS of $0.73 for Q1 were 387% higher than the prior-year quarter's $0.15 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 51.9%, 30 basis points worse than the prior-year quarter. Operating margin was 18.3%, 920 basis points better than the prior-year quarter. Net margin was 7.5%, 610 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.99 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $16.51 billion. The average EPS estimate is $3.41.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 367 members out of 388 rating the stock outperform, and 21 members rating it underperform. Among 81 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 75 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 $47.10.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.