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Today's Research on Top Power Companies: First Energy and Duke Energy

NEW YORK, NY / ACCESSWIRE / May 10, 2017 / First Energy continues to feel the burn as investors continue to worry about testimony over a bill that will provide subsidies to the Ohio power company to keep its two nuclear power plants operating in the state. Duke Energy takes a small loss despite reporting first quarter earnings that came in above estimates.

RDI Initiates Coverage on:

FirstEnergy Corp.

Duke Energy Corporation

FirstEnergy shares closed down 1.02% yesterday. The stock has been cruising lower in recent days as more investors become concerned about the increased prices that customers would face in order to fund subsidies for two of the company's Ohio nuclear power plants; Davis-Besse and Perry. It's not yet entirely clear how much FirstEnergy's rates could go up, but the increases would be capped at 5 percent.

Dynegy CEO Bob Flexon, stated, "First, with respect to electric generation, competitive markets work. They deliver the lowest price over the long term to customers, and the proof is undeniable. Second, measures that restrict customer shopping or subsidize one electric generator over another are throwbacks to monopoly regulation. Such efforts that pick 'winners' and 'losers' in the energy market would create obstacles to private investment in generation and increase prices for customers ... more important, all of (FirstEnergy's) generation-related investments – including the risks that accompany them – are now borne by (FirstEnergy) shareholders and not by customers."

The company reported a Q1 earnings report that beat estimates just at the end of last month. First quarter net income came in at $205 million and on a per share basis, net income was 46 cents. Earnings, adjusted for non-recurring costs, was 78 cents a share. Six analysts surveyed by Zacks had expected 71 cents. Shares of the company are down more than 27% since its 52-week high of $36.60.

Access RDI's FirstEnergy Research Report at:

Duke Energy Corporation shares traded pretty flat on Tuesday, despite a decent first quarter earnings report. The stock dropped 0.98% on Tuesday to close at $82.11. The company's Q1 report were mostly in line with what analysts had expected but revenue came up short. Analysts had called for $1.03 per adjusted share on revenue of $5.76 billion. Duke reported adjusted earnings per share of $1.04 and revenues of $5.73 billion. Looking ahead, CEO Lynn Good says the company will expect full year earnings of $4.50 to $4.70 per share. "Our ongoing investments drove solid growth in our electric and gas utilities in the quarter, and we are responding to warm winter weather through disciplined cost management and operational efficiency," said Good. Its 2015 acquisition of Piedmont Natural Gas for $4.9 billion has been helping the company.

Access RDI's Duke Energy Research Report at:

Our Actionable Research on FirstEnergy Corp. (NYSE: FE) and Duke Energy Corporation (NYSE: DUK) can be downloaded free of charge at Research Driven Investing.

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SOURCE: RDInvesting.com