Company Reports

We are maintaining our $43 fair value estimate for FirstEnergy after the company reported first-quarter earnings per share of $0.55, down from $0.60 in the year-ago period.

FirstEnergy's regulated utilities are focused on accelerating investments that should result in solid earnings growth. The company expects to invest $26 billion through 2028, a 44% increase from the previous five-year capital investment plan, supporting our expectations for the company to achieve the midpoint of management's 6%-8% annual earnings growth target.

We are increasing our FirstEnergy fair value estimate to $43 per share from $40 after the company reported full-year 2023 earnings of $2.56 per share, up from $2.41 in the same year-ago period.

FirstEnergy's regulated utilities are focused on accelerating investments that should result in solid earnings growth. The company expects to invest $26 billion through 2028, supporting our expectations of the company to achieve the midpoint of management's 6%-8% annual earnings growth target.

With the U.N. Climate Change Conference, otherwise known as COP28, starting this week, we are reasserting our view that the market underappreciates utilities' critical role in limiting global warming.

In 2021, FirstEnergy reached an agreement with the Department of Justice to settle its involvement in the 2020 Ohio bribery scheme. The company continues to work through legal settlements and open regulatory proceedings in the state. Its three Ohio distribution utilities represent less than 20% of operating earnings.

We are reaffirming our $40 per share fair value estimate after FirstEnergy reported third-quarter earnings of $0.88 per share, up from $0.79 per share in the same year-ago period.

We are reaffirming our fair value estimates and economic moat ratings for all U.S. utilities after the sector fell nearly 5% on Monday. We think the sector's 11% drop since last week offers a rare opportunity for investors to buy high-quality utilities at very attractive prices.

FirstEnergy is moving past the scandal that linked the company with funds used in the former Ohio House speaker's bribery scheme benefiting two nuclear plants FirstEnergy once owned as part of its former subsidiary, FirstEnergy Solutions.

We are reaffirming our $40 per share fair value estimate after FirstEnergy reported second-quarter operating earnings of $0.47 per share, down from $0.53 per share in the same year-ago period. Management reaffirmed 2023 operating earnings guidance of $2.44-$2.64 per share, in line with our expectations. Our narrow moat rating is unchanged.

We are reaffirming our $40 fair value estimate for FirstEnergy after the company reported first-quarter earnings per share of $0.60, flat with the year-ago period. Management reaffirmed its 2023 operating EPS guidance of $2.44-$2.64, in line with our expectations. Our narrow moat and stable moat trend ratings are unchanged.

FirstEnergy is moving past the scandal that linked the company with funds used in the former Ohio House speaker's bribery scheme benefiting two nuclear plants FirstEnergy once owned as part of its former subsidiary, FirstEnergy Solutions.

We are reaffirming our $40 per share fair value estimate after FirstEnergy recently announced that utility veteran Brian Tierney would become CEO effective June 1. Our narrow moat and stable moat trend remain unchanged.

FirstEnergy is moving past the scandal that linked the company with funds used in the former Ohio House speaker's bribery scheme benefiting two nuclear plants FirstEnergy once owned as part of its former subsidiary, FirstEnergy Solutions.

We are reaffirming our $40 per share fair value estimate after FirstEnergy reported 2022 full-year earnings of $2.41 per share, down from $2.60 in 2021. Our narrow moat and stable moat trend remain unchanged.

We are reaffirming our $40 per share fair value estimate after FirstEnergy announced that it had sold an additional 30% interest in FirstEnergy Transmission, or FET, for $3.5 billion to Brookfield Super-Core Infrastructure Partners, bringing Brookfield's ownership to 49.9% after acquiring a 19.9% stake last year.

We are lowering our FirstEnergy fair value estimate to $40 per share from $41 after the company reported third-quarter operating earnings of $0.79 per share, compared with $0.82 in the same year-ago period. Management guided toward the upper end of its 2022 operating earnings guidance range of $2.30 to $2.50 per share, in line with our estimate. Our narrow moat and stable moat trend remain unchanged.

FirstEnergy is moving past the scandal that linked the company with funds used in the former Ohio House speaker's bribery scheme benefiting two nuclear plants FirstEnergy once owned as part of its former subsidiary, FirstEnergy Solutions.

We are reaffirming our fair value estimates for U.S. utilities after raising our 10-year annual U.S. electricity demand growth forecast to 1.4%, up from 1.2% in our previous forecast two years ago. We also are reaffirming our economic moat and moat trend ratings for all U.S. utilities.

FirstEnergy is moving past the scandal that linked the company with funds used in the former Ohio House speaker's bribery scheme benefiting two nuclear plants FirstEnergy once owned as part of its former subsidiary, FirstEnergy Solutions.