Jefferies Lifts Target, Adjusts Numbers on FirstEnergy (FE) Following Q3 Results
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Price: $48.06 --0%
Rating Summary:
16 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 19 | New: 16
Rating Summary:
16 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 19 | New: 16
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Jefferies raised its price target on FirstEnergy (NYSE: FE) from $45 to $46, while maintaining a Hold rating on the stock, following third-quarter numbers.
FE reported third-quarter earnings of $1.34 per share, above the $1.22 consensus estimate. Jefferies was looking for earnings of $1.20 in the quarter. On the numbers, Jefferies is boosting its fiscal 2011 earnings outlook by 5 cents to $3.35 per share. Jefferies fourth-quarter earnings outlook moves from 75 cents to 65 cents per share.
Commenting, Jefferies said, "FE expects they will be able to achieve their merger savings targets for 2011. Through September 2011, they estimate they have completed savings initiative that should result in $165 million of pre-tax savings (annualized) or 79% of projected $210 million of savings in 2011."
Following an update to its forward power and nat gas prices, Jefferies is also taking down 2012 and 2013 earnings estimates for FE by 5 cents to $3.15 per share in both periods.
Finally, Jefferies noted, "FE is expecting to finalize the investigation of sub-surface hairline cracks in two localized areas of the Shield Building by the end of this week. The cracks are similar to those found in the architectural elements. The NRC indicated that the issue will have to be resolved before FE re-starts the reactor."
For more ratings news on FirstEnergy Corp. click here and for the rating history of FirstEnergy Corp. click here.
Shares of FirstEnergy Corp. closed at $44.97 yesterday.
FE reported third-quarter earnings of $1.34 per share, above the $1.22 consensus estimate. Jefferies was looking for earnings of $1.20 in the quarter. On the numbers, Jefferies is boosting its fiscal 2011 earnings outlook by 5 cents to $3.35 per share. Jefferies fourth-quarter earnings outlook moves from 75 cents to 65 cents per share.
Commenting, Jefferies said, "FE expects they will be able to achieve their merger savings targets for 2011. Through September 2011, they estimate they have completed savings initiative that should result in $165 million of pre-tax savings (annualized) or 79% of projected $210 million of savings in 2011."
Following an update to its forward power and nat gas prices, Jefferies is also taking down 2012 and 2013 earnings estimates for FE by 5 cents to $3.15 per share in both periods.
Finally, Jefferies noted, "FE is expecting to finalize the investigation of sub-surface hairline cracks in two localized areas of the Shield Building by the end of this week. The cracks are similar to those found in the architectural elements. The NRC indicated that the issue will have to be resolved before FE re-starts the reactor."
For more ratings news on FirstEnergy Corp. click here and for the rating history of FirstEnergy Corp. click here.
Shares of FirstEnergy Corp. closed at $44.97 yesterday.
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