Analyst Note| Andrew Bischof, CFA, CPA |
We are reaffirming our $42 per share fair value estimate after FirstEnergy reported third-quarter operating earnings of $0.82 per share, compared to $0.84 in the same year-ago period. Management increased its operating earnings guidance range to $2.55-$2.65, up from $2.40-$2.60. Management previously indicated earnings would be in the upper end of the range. We plan to increase our full-year earnings estimate, but the increase will not have a material impact on our fair value. Our narrow moat and stable moat trend remain unchanged.