Earnings Preview: FirstEnergy's Revenue Expected to Rise

FirstEnergy FE releases its next round of earnings this Tuesday, August 2, 2011. Here's Benzinga's advanced look at FirstEnergy's second quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of 75 cents/share and revenues of $3.97 billion. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of 82 cents/share on revenues of $3.13 billion. We'll have to wait for Tuesday to see if FirstEnergy reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of July 29, 2011, FirstEnergy's current share price was $44.65. Shares are up 23.9% year to date. For a full 12 months, the return has risen by 21.4%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for FirstEnergy is a Hold. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how FirstEnergy compares to rivals in the same sector? Here are a few of the company's peers.

• American Electric Power Company AEP: Hold with a $0.73 recent quarter EPS
• CH Energy Group CHG: Moderate Sell with a $0.38 recent quarter EPS
• Duke Energy DUK: Moderate Sell with a $0.39 recent quarter EPS
• Consolidated Edison ED: Moderate Sell with a $0.97 recent quarter EPS

FirstEnergy is in the utility-electric power industry, which has experienced price/earnings growth of 22.1%.

Finally, a description of the company's main areas of operation: FirstEnergy is a diversified energy company that operates through its subsidiaries: OE, CEI, TE, Penn, ATSI, JCP&L, Met-Ed and Penelec.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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