FirstEnergy Corporation FE is scheduled to release second-quarter 2026 results on July 28, after market close. The company reported earnings in line with Zacks consensus estimates in the latest reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
FE’s Q2 Expectations
The Zacks Consensus Estimate for earnings is pegged at 49 cents per share, indicating a year-over-year decline of 5.77%.
The Zacks Consensus Estimate for revenues is pinned at $3.59 billion, implying a 6.28% improvement year over year.
Factors Likely to Have Impacted FE’s Q2 Performance
FirstEnergy’s second-quarter earnings are expected to have been supported by higher load growth, reflecting increased electricity demand from data centers and industrial users. Strong economic activity across FE's service territory is expected to have driven earnings in the to-be-reported quarter. The company's growing customer base and continued investment in its transmission and distribution network are also likely to have contributed to its performance in the second quarter.
FirstEnergy continues to invest in infrastructure modernization, grid upgrades and asset replacement under its Energize365 program. The company's operational efficiency and robust infrastructure are expected to have supported rising electricity demand, contributing positively to second-quarter earnings. FE's diversified service territory is also likely to have generated fresh demand, while its low-risk investment plan is expected to have boosted second-quarter earnings.
However, higher operation and maintenance expenses, along with storm restoration costs, are likely to have partially offset the company's second-quarter earnings growth.
What Our Quantitative Model Predicts for FE
Our proven model does not conclusively predict an earnings beat for FirstEnergy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
Earnings ESP: The company’s Earnings ESP is -3.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, FirstEnergy has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.
FirstEnergy Corporation Price and EPS Surprise
FirstEnergy Corporation price-eps-surprise | FirstEnergy Corporation Quote
Stocks to Consider
Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
Edison International EIX is set to report second-quarter results on July 30 and is likely to have come up with an earnings beat. It has an Earnings ESP of +4.66% and a Zacks Rank #2 at present.
EIX’s long-term earnings growth rate is 2.10%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.02 per share, which implies a year-over-year increase of 5.15%.
The Southern Company SO is scheduled to report second-quarter results on July 30 and is likely to have come up with an earnings beat. It has an Earnings ESP of +2.54% and a Zacks Rank #3
at present.
SO’s long-term earnings growth rate is 11.15%. The Zacks Consensus Estimate for second-quarter EPS is pinned at $1.02 per share, which implies a year-over-year increase of 12.09%.
Southwest Gas SWXis scheduled to report second-quarter results on Aug. 5 and is likely to have come up with an earnings beat. It has an Earnings ESP of +5.64% and a Zacks Rank #2 at present.
SWX’s long-term earnings growth rate is 9.89%. The Zacks Consensus Estimate for second-quarter EPS is pinned at 47cents per share, which implies a year-over-year decrease of 11.32%.
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FirstEnergy Corporation (FE): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).