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What's in the Offing for Exelon (EXC) This Earnings Season?

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Exelon Corporation (EXC - Free Report) is scheduled to release third-quarter 2020 earnings on Nov 3, before the market opens. This utility delivered an earnings surprise of 30.95% in the last reported quarter.

Let’s see how things have shaped up before the upcoming earnings announcement.

Factors to Note

Nearly 70% of Exelon’s utilities revenues are subject to decoupling, which ensures a steady follow of revenues and lowers volumetric risks. With the easing of restrictions, demand from commercial and industrial (C&I) customers is expected to have improved from the low levels touched during the pandemic-induced shutdown. This is likely to have a positive impact on third-quarter results. The company is also likely to have enjoyed the benefits from strong residential demand. Exelon took initiatives to effectively manage expenses. This is likely to have positive impacted third-quarter earnings.

Storms interrupted services and impacted operations during the quarter. Nevertheless, the company restored operations in the affected areas through the efficient workforce.

Expectations

Exelon expects third-quarter earnings in the range of 80-90 cents per share.

The Zacks Consensus Estimate for third-quarter revenues and earnings per share is pegged at $8.62 billion and 87 cents, respectively. The estimated figures indicate a decline of 3.5% and 5.4%, respectively, from the year-ago reported numbers.

Exelon Corporation Price and EPS Surprise

Exelon Corporation Price and EPS Surprise

Exelon Corporation price-eps-surprise | Exelon Corporation Quote

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Exelon this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here as you will see below.

Earnings ESP: The company’s Earnings ESP is 0.00%.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Currently, Exelon carries a Zacks Rank #3.

Stocks to Consider

Investors can consider the following players from the same industry that have the right combination of elements to post an earnings beat in the to-be-reported quarter.

Pampa Energia SA (PAM - Free Report) is likely release third-quarter 2020 results soon. It has an Earnings ESP of +1,537.50% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Pinnacle West Capital Corporation (PNW - Free Report) is slated to release third-quarter 2020 results on Oct 30. It has an Earnings ESP of +0.98% and a Zacks Rank #3.

NiSource Inc. (NI - Free Report) is slated to release third-quarter 2020 results on Nov 2. It has an Earnings ESP of +150.00% and a Zacks Rank #3.

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