Apr. 21 at 12:04 AM
$FE Heads up alert! Only one day until Upcoming earnings on Monday, 4/21/2025 for
$FE Bearish (3.5)
FirstEnergy Corp. (NYSE: FE) has recently faced a series of challenges that raise concerns about its short and long-term financial health.
The company reported a decline in net income and earnings per share despite a rise in sales and revenue, indicating potential issues with cost management or operational efficiency.
Its current P/E ratio stands at 15.8, which is above the industry average of 14.5, suggesting that the stock may be overvalued given its declining net income.
Furthermore, analysts are forecasting a modest EPS growth of 2% for 2025, which, while positive, does not inspire confidence given the recent earnings performance.
Revenue forecasts indicate a slight uptick, but this is overshadowed by the company's struggle with profitability.
Comparatively, FirstEnergy's peers, such as Dominion Energy and NextEra Energy, have shown more robust financial metrics and growth trajectories, further highlighting FirstEnergy's underperformance in a competitive landscape.
Additionally, the company is facing activist shareholder pressure regarding transparency in lobbying activities, which could complicate governance and distract management from operational priorities.
Looking ahead, FirstEnergy is expected to release its upcoming earnings report on April 23, 2025.
Analysts are cautious, anticipating that the company may not meet expectations due to the lack of favorable indicators in the lead-up to the earnings call.
Historically, FirstEnergy has shown volatility around earnings announcements, and with a recent price dip of approximately 4% following its last report, there is a palpable concern among investors.
The consensus estimates suggest that while there may be a slight increase in core earnings per share, the overall climate of market volatility and operational challenges could dampen enthusiasm for the stock in the near term.
This combination of factors suggests that investors should proceed with caution as they evaluate FirstEnergy's potential for recovery and growth.
- Funds were net buyers of
$FE during the previous reporting quarter.
- Top 4 funds with large holdings in
$FE:
* Soroban Capital Partners LP
$332MM. CGMFundRank: 69%, Fund Website: www.edgr.io
* Aventail Capital
$12MM. CGMFundRank: 78%
* Holocene Advisors LP
$2MM. New position. CGMFundRank: 80%, Fund Website: www.holoceneadvisors.com
* Teza Capital Management LLC
$2MM. CGMFundRank: 85%, Fund Website: www.tezacapital.com
- Last 10 days performance: 9%
- Last 30 days performance: 5%
- Last 90 days performance: 6%
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