(FE) - The consensus estimate for 2006 currently resides at $3.84, and represents upward revisions by three analysts over the past 60 days

FirstEnergy Corp. (FE), a Zacks #1 Rank stock, exceeded analysts' earnings expectations in 11 out of the past 12 quarters by an average margin of 10.5%. The company raised its full-year 2006 earnings per share guidance in early August. Consensus estimates for this year and next have been on the rise. FE has a price-to-book ratio of 2.0, compared to 5.2 for the market. The company has a current dividend yield of 3.2%. Full Analysis FirstEnergy Corp. is a diversified energy company in the United States that is engaged in the generation, transmission and distribution of electricity, as well as energy management and other energy-related services. Over the past 12 quarters, FE succeeded in beating the Street's earnings estimate on 11 occasions. During this period of time, the average margin of surprise was 10.5%. The company managed to match the consensus estimate in the one quarter in which it did not surprise. On Aug 1, FE topped analysts' second-quarter earnings expectations by two cents when it posted profits of 94 cents per share. Compared to the 71 cents per share recorded in the prior-year period, the result represented an impressive 32.4% year-over-year improvement. Revenues were down slightly to $2.79 billion from $2.84 billion due to the company's sale of 62% of its interest in MYR Group, a construction services company, earlier this year. Commenting on FE's strong quarter, President and Chief Executive Officer Anthony J. Alexander stated, “The strong performance of our generating fleet enabled us to produce and sell more electricity compared with the same period last year, despite significantly milder weather during the quarter.” The company raised its full-year 2006 earnings per share guidance to between $3.65 and $3.85. Its previous outlook called for profits between $3.45 and $3.65 per share. Analysts responded by bumping up their forecasts. The consensus estimate for 2006 currently resides at $3.84, and represents upward revisions by three analysts over the past 60 days. Looking ahead to next year, revised estimates were submitted by four analysts, with the consensus currently sitting at $4.19. On Sep 19, the Board of Directors declared a quarterly cash dividend of 45 cents per common share of stock. The dividend will be paid on Dec 1, to shareholders of record as of Nov 7. FE is currently yielding 3.2%. The Board also announced on Aug 10 that it repurchased 10.6 million shares, equating to about 3.2% of its outstanding common stock, for an initial price of $600 million. Alexander stated, “This share repurchase, along with the three dividend increases we've implemented over the past two years, are key elements of our ongoing efforts to enhance the value of our shareholders' investment in FirstEnergy.” FE is currently trading at a valuation of 16.7x trailing 12-month earnings and at 14.9x current fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 17.0x trailing 12-month earnings and at 16.0x its current fiscal-year estimated earnings. The company has a price-to-book ratio of 2.0, compared to 5.2 for the market. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home