AKRON, Ohio - FirstEnergy Corp. (NYSE: NYSE:FE), a major electric utility company, announced the appointment of Stephen Avila as Vice President of Customer Care, effective as of last Thursday. Avila is tasked with enhancing customer service through the use of innovative technologies and data analytics.
With a focus on improving the customer experience, Avila will manage the company's customer account and payment systems, customer care, and self-service options. He will also lead efforts to innovate in all aspects of FirstEnergy's customer interactions. Avila will report directly to Michelle Henry, Senior Vice President of Customer Experience.
Henry commented on the appointment, highlighting Avila's extensive experience in retail and his proven track record in using technology to transform customer service. Avila's role will be pivotal in adapting services to meet customer needs and maintaining high service standards.
Avila's previous position was with Macy's (NYSE:M), where he served as the Head of Global Customer Service. During his 25-year tenure at Macy's, he was recognized for redefining the company's service model and leveraging technology to distinguish Macy's service in the retail market. His leadership saw the simplification of processes and transformation of customer service strategies.
Avila holds a Bachelor of Science degree in Business Management from the University of Arizona and has certifications in Six Sigma and Agile Methodologies. He is also active in community service, contributing to nonprofit boards that improve educational opportunities for disadvantaged youth.
FirstEnergy serves over 6 million customers across six states and operates one of the nation's largest investor-owned electric systems. The company is known for its commitment to integrity, safety, reliability, and operational excellence.
This news is based on a press release statement from FirstEnergy Corp.
In other recent news, FirstEnergy Corp. has been making notable strides in its financial and regulatory operations. The company recently reported operating earnings of $0.55 per share in its first quarter 2024 earnings call, surpassing guidance expectations.
Despite a drop in GAAP earnings, the company affirmed a long-term operating growth rate of 6% to 8%. FirstEnergy also announced a dividend increase and a planned capital expenditure of $4.3 billion for 2024, focusing on grid modernization and infrastructure.
In addition to its earnings results, FirstEnergy filed its anticipated Ohio distribution rate case, seeking a modest rate increase across its three Ohio utilities. This is the first update in over a decade and a half for the rates of its Ohio utilities. The requested 10.8% return on equity is a slight step up from the previous 10.5%, and the equity ratio has also been increased from 49% to 55%.
Reacting to these developments, Mizuho increased the price target for FirstEnergy shares to $41 from $38, while maintaining a Neutral rating on the stock. Similarly, KeyBanc Capital Markets maintained its Overweight rating and a price target of $43.00 for FirstEnergy, reflecting confidence in the company's future performance.
InvestingPro Insights
In light of FirstEnergy Corp.'s (NYSE: FE) recent leadership appointment, investors may be keen to understand how the company's financial health might support its strategic customer service initiatives. According to InvestingPro data, FirstEnergy operates with a market capitalization of $22.39 billion and has sustained a steady revenue growth of 1.85% over the last twelve months as of Q1 2024. This suggests a solid financial foundation for the company's plans to enhance customer service.
The company's commitment to shareholder returns is evident with a notable dividend yield of 4.37% as of May 2024, reflecting a dividend growth of 8.97% from the last twelve months as of Q1 2024. This demonstrates FirstEnergy's ability to maintain consistent dividend payments, which it has done for 27 consecutive years—a fact that might interest long-term investors.
From an earnings perspective, three analysts have recently revised their earnings estimates upwards for the upcoming period, indicating potential confidence in the company's performance. Furthermore, FirstEnergy's stock is trading at a P/E ratio of 20.97, which is considered low relative to near-term earnings growth, with a PEG ratio of just 0.13. This could suggest that the stock is undervalued given its growth prospects.
For investors looking to delve deeper into FirstEnergy's financials and gain more insights, there are additional InvestingPro Tips available at https://www.investing.com/pro/FE. These tips, which could further inform investment decisions, include considerations of the company's debt burden and liquidity position. Interested readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking even more valuable financial analysis and data.
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