AKRON, Ohio - FirstEnergy Corp. (NYSE: NYSE:FE), a major electric utility company with a market capitalization of $22.9 billion, announced on Wednesday that its Board of Directors has declared a quarterly dividend of $0.425 per share on outstanding common stock. The dividend is scheduled to be paid on March 1, 2025, to shareholders who are on record as of February 7, 2025. According to InvestingPro data, FirstEnergy has maintained dividend payments for 27 consecutive years, with the current yield standing at 4.3%.
This decision comes as FirstEnergy continues to navigate a complex landscape of economic conditions, regulatory changes, and industry challenges. The company, which serves over six million customers across several states including Ohio, Pennsylvania, New Jersey, West Virginia, Maryland, and New York, operates one of the nation's largest investor-owned electric systems and maintains approximately 24,000 miles of transmission lines. InvestingPro analysis shows that four analysts have recently revised their earnings upwards for the upcoming period, with the stock trading at a P/E ratio of 25.6x. InvestingPro subscribers can access 8 additional key insights about FirstEnergy's financial outlook.
FirstEnergy's commitment to integrity, safety, reliability, and operational excellence remains a cornerstone of its business strategy. The company is also focused on achieving its goals related to employee, environmental, social, and corporate governance, which includes greenhouse gas (GHG) reduction targets. With a gross profit margin of nearly 70% and revenue growth of 4.3% over the last twelve months, the company maintains a stable financial foundation despite operating with significant debt levels.
The announcement of the unchanged dividend reflects a continuity in FirstEnergy's financial practices amid various factors that could potentially impact the company's performance. These factors include, but are not limited to, economic conditions, climate change, energy demand shifts, and the outcomes of government investigations and litigation. InvestingPro's comprehensive analysis indicates the stock generally trades with low price volatility, making it an interesting consideration for investors seeking stability. A detailed Pro Research Report covering FirstEnergy's complete financial health and market position is available to InvestingPro subscribers.
Investors and stakeholders should note that forward-looking statements provided by the company are subject to risks and uncertainties. These statements, which often contain terms like "anticipate," "expect," and "believe," are based on current management expectations and involve assumptions and estimates that may change. The company cautions against placing undue reliance on these statements due to the potential for future results to differ materially from expectations.
The information provided is based on a press release statement from FirstEnergy Corp. and is intended for factual reporting only. It is important for readers to consider the full range of factors and risks disclosed by FirstEnergy in its SEC filings when evaluating the company's outlook.
In other recent news, FirstEnergy Corp has reported a slight dip in GAAP earnings per share in its Third Quarter 2024 Earnings Conference Call, compared to the same quarter in 2023. Despite challenges such as higher storm-related expenses and the impact of a 30% sale of FirstEnergy Transmission, the company's capital investment plan for 2024 has been increased by 24%, focusing on enhancing grid reliability and customer experience. A joint development agreement for regional transmission projects has been entered, potentially bringing in a $3.8 billion investment.
Scotiabank (TSX:BNS) has raised FirstEnergy's stock to Sector Outperform, highlighting the company's recovery and progress following a past bribery scandal. Meanwhile, KeyBanc has maintained its focus on FirstEnergy as an attractive investment within the utility sector, despite lowering the price target slightly. On the other hand, Seaport Global Securities has downgraded FirstEnergy's stock rating from Buy to Neutral due to regulatory risks in Ohio.
These are recent developments that reflect FirstEnergy's commitment to its long-term growth and operational excellence. Fitch has upgraded FirstEnergy's issuer and unsecured credit ratings, indicating an improved financial position. The company has reaffirmed its long-term growth rate at 6% to 8% with a $26 billion five-year capital expenditure plan through 2028.
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