FirstEnergy Q1 Earnings Surpass Estimates, Revenues Increase Y/Y

FirstEnergy FE reported first-quarter 2025 operating earnings of 67 cents per share, which beat the Zacks Consensus Estimate of 60 cents by 11.7%. The bottom line also increased 36.7% from the year-ago quarter’s figure of 49 cents. (See the Zacks Earnings Calendar to stay ahead of market-making news)

The year-over-year increase in earnings was due to the impact of new base rates in Pennsylvania, West Virginia and New Jersey, growth in rate base under formula rate programs, lower financing costs and normal weather-related demand.

The company generated GAAP earnings of 62 cents per share compared with 44 cents in the first quarter of 2024.

Total Revenues of FE

Operating revenues of $3.77 billion surpassed the Zacks Consensus Estimate of $3.65 billion by 3.2%. The top line increased 14.6% from $3.29 billion recorded in the year-ago quarter.

FE’s Segmental Performance

Distribution: Revenues from this segment totaled $1.94 billion, up 9.6% from the prior-year quarter’s level.

Integrated: Revenues from this segment amounted to $1.35 billion compared with $1.09 billion in the year-ago quarter.

Stand-Alone Transmission:  Revenues from this segment amounted to $491 million compared with $438 million in the prior-year quarter.

Highlights of FE’s Q1 Earnings Release

Total operating expenses were $3.01 billion, up 12.3% from the year-ago quarter’s level of $2.68 billion.

Operating income totaled $754 million, up 23.2% from the year-ago recorded number of $612 million.

The company reported an interest expense of $288 million, down 5.6% from the prior-year level of $289 million.

Total distribution deliveries increased more than 4% compared to the mild first quarter of 2024, when heating degree days were 15% below normal.

FE’s 2025 Guidance

FirstEnergy expects 2025 core earnings per share to be in the range of $2.40-$2.60. The Zacks Consensus Estimate is pegged at $2.70 per share, which is higher than the company’s guided range.

FirstEnergy expects a long-term EPS growth rate of 6-8%. FE has a capital investment plan of $28 billion for the 2025-2029 period.

The company expects its 2025 capital investment to be $5 billion.

FE’s Zacks Rank

FirstEnergy currently has a Zacks Rank #4 (Sell).

You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Releases

IDACORP IDA is scheduled to report first-quarter results on May 1, before market open. The Zacks Consensus Estimate for first-quarter earnings is pegged at $1.05 per share, which suggests a year-over-year increase of 10.5%.

IDA’s long-term (three to five years) earnings growth rate is 8.47%. The Zacks Consensus Estimate for 2025 earnings is pinned at $5.85 per share, which implies a year-over-year improvement of 6.4%.

Pinnacle West Capital Corporation PNW is scheduled to report first-quarter results on May 1, before market open. The Zacks Consensus Estimate for earnings is pegged at a loss of a cent per share.

PNW’s long-term earnings growth rate is 2.12%. The Zacks Consensus Estimate for 2025 earnings is pinned at $4.50 per share, which implies a year-over-year decline of 14.1%.

Alliant Energy LNT is slated to report first-quarter results on May 8, after market close. The Zacks Consensus Estimate for earnings is pegged at 56 cents per share.

LNT’s long-term earnings growth rate is 6.73%. The Zacks Consensus Estimate for 2025 earnings is pinned at $3.22 per share, which implies a year-over-year improvement of 5.9%.

 

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This article originally published on Zacks Investment Research (zacks.com).

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