FirstEnergy (FE) is expected to post higher Q3 core earnings, driven by transmission and distribution investments, Pennsylvania's Distribution System Improvement Charge rider and new rates in Ohio and West Virginia, BofA Securities said in an earnings preview Tuesday.

The company is expected to report its Q3 results on Oct. 27 after market close. BofA expects Q3 core earnings of $0.90 per share. The analyst expects FirstEnergy to reaffirm its 2026 EPS guidance of $2.62 to $2.82 and its outlook for annual earnings growth near the upper end of its 6% to 8% range through 2030.

FirstEnergy has about 8 gigawatts of contracted data center load, double the 4 GW reflected in its current plan. BofA sees potential upside from additional transmission investment, potential PJM awards and organic projects, though demand growth is expected to extend through 2035.

The investment firm expects FirstEnergy's February capital plan update to provide details on data center load, transmission opportunities and generation investments, including the Maidsville project. It lowered its 2027 and 2028 EPS estimates to $2.92 and $3.16 from $2.95 and $3.18 amid regulatory uncertainty and the timing of investment recovery.

BofA reiterated its neutral rating on the stock and cut its price target to $47 from $53.

FirstEnergy shares were down 1% in early Tuesday trading.

Price: 44.91, Change: -0.45, Percent Change: -0.99