FirstEnergy Looking Past Dark Days

FirstEnergy (FE Quote), the utility blamed for America's largest blackout, has offered a dim forecast for the coming year.

Even after factoring in positive developments -- some of them viewed as too sunny -- the company expects to fall short of Wall Street expectations in 2004. The company cited increased costs in its home state of Ohio, together with an unfavorable rate case and equity dilution, for the earnings shortfall. It now expects to deliver full-year profits of $2.70 to $2.85 a share, or at least a nickel shy of the $2.90 consensus estimate.

Yet the market ignored the bad tidings, pushing shares of FirstEnergy up 32 cents to $35.12 in late-morning trading. Buoyed by a surging stock market, the company's stock has now recovered all the ground it lost in the wake of Aug. 14's massive power outage. ...