Q3 2023 Earnings Summary
Reported on Oct 27, 2023 (After Market Close)
Pre-Earnings Price$35.13Last close (Oct 27, 2023)
Post-Earnings Price$35.13Last close (Oct 27, 2023)
Price Change
$0.00(0.00%)
- FirstEnergy's growth is supported by multiple ongoing rate cases across different states, not solely dependent on the Ohio distribution case, with expected signs of progress before the end of 2025, including the Ohio ESP Grid Mod II, New Jersey case, and West Virginia case.
- Active engagement in settlement discussions for the Ohio ESP V and Grid Mod II cases, aiming for outcomes similar to other utilities, indicates potential favorable regulatory results that could boost the company's growth.
- The company's EPS growth plan already accounts for additional costs from organizational changes, such as hiring additional managers and a COO, demonstrating management's confidence in achieving growth targets despite increased expenses.
- FirstEnergy's growth and dividend plans are heavily dependent on the outcome of the Ohio distribution rate case, which won't be decided until late 2025, introducing uncertainty in validating their growth profile.
- Current earnings are lower than normal earned ROEs, and the company expects to improve them through rate cases to achieve ROEs of 9.5% to low 10s, posing execution risk if regulatory outcomes are unfavorable.
- Additional costs from hiring new managers and a COO may impact earnings, raising concerns about whether these expenses are adequately reflected in the EPS growth plan.
Research analysts covering FIRSTENERGY.