Shares of FirstEnergy (NYSE: FE) rallied more than 10% by 2:30 p.m. EST on Thursday. Powering the utility stock 's surge was its fourth-quarter results, 2021 outlook, and the revelation that Carl Icahn might be buying a stake in the company.
FirstEnergy reported rather lackluster Q4 results. It only generated $0.32 per share of operating earnings, which missed the analysts' consensus estimate by $0.16 per share. As a result, the company's full-year results came in at $2.39 per share, below 2019's level of $2.58 per share. The primary issue weighing on the company's earnings was the proactive steps it took to resolve the regulatory issues facing its Ohio utilities following last year's bribery scandal , which cost it $0.15 per share in Q4. On top of that, lower weather-related energy usage and higher costs also impacted its Q4 results.
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Why FirstEnergy Stock Is Surging Today