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Exelon (EXC) Up 11.4% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Exelon (EXC - Free Report) . Shares have added about 11.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exelon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Exelon Q4 Earnings Surpass Estimates, Revenues Lag
Exelon Corporation’s fourth-quarter 2020 operating earnings of 76 cents per share surpassed the Zacks Consensus Estimate of 71 cents by 7%. However, the reported earnings were 8.4% lower than the year-ago figure owing to unfavorable weather conditions at PECO, reduction in demand due to the COVID-19 pandemic and lower realized energy prices.
On a GAAP basis, quarterly earnings were 37 cents per share compared with 79 cents in the year-ago quarter.
Total Revenues
Exelon's total revenues of $8,117 million lagged the Zacks Consensus Estimate of $8,299 million by 1.4%. The top line also declined 2.7% from the year-ago figure of $8,343 million.
Highlights of the Release
Exelon's total operating expenses increased nearly 6.2% year over year to $7,853 million.
Interest expenses were $395 million, on par with the year-ago quarter.
In 2020, the company efficiently served 0.7% and 1.04% more electric and natural gas customers, respectively, than 2019. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 96.2% capacity factor for the quarter compared with 95.0% for fourth-quarter 2019.
During the year, the company achieved cost savings of $400 million, $150 million more than planned, through efficient cost management.
Planned Separation
On Feb 24, 2021, Exelon announced that its board of directors approved a plan to separate the utilities business, comprising the company’s six regulated electric and gas utilities, and Generation, its competitive power generation and customer-facing energy businesses. This will create two publicly-traded companies with the necessary resources to best serve customers, and help it sustain long-term investment as well as operating excellence. Exelon is targeting to complete the separation in first-quarter 2022, subject to final approval by the board of directors and other necessary approvals.
Hedges
Exelon's hedging program involves safeguarding of commodity risks for expected generation. As of Dec 31, 2020, the proportion of expected generation hedged for the Mid-Atlantic, Midwest, New York and ERCOT reportable segments was 97% for 2021.
Financial Highlights
Cash and cash equivalents were $663 million as of Dec 31, 2020 compared with $587 million in the corresponding period of 2019.
Long-term debt was $35,093 million as of Dec 31, 2020 compared with $$31,329 million in the comparable period of 2019.
Cash from operating activities for 2020 was $4,235 million compared with $6,659 million in 2019.
Guidance
Exelon issued its 2021 earnings guidance in the range of $2.60-$3.00 per share. The midpoint of the above guided range is $2.80, lower than the Zacks Consensus Estimate of $2.94 per share for the period.
Exelon Utilities projects capital expenditures of $27 billion over the 2021-2024 time period to benefit its customers.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted -9.58% due to these changes.
VGM Scores
At this time, Exelon has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Exelon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Exelon (EXC) Up 11.4% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Exelon (EXC - Free Report) . Shares have added about 11.4% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Exelon due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Exelon Q4 Earnings Surpass Estimates, Revenues Lag
Exelon Corporation’s fourth-quarter 2020 operating earnings of 76 cents per share surpassed the Zacks Consensus Estimate of 71 cents by 7%. However, the reported earnings were 8.4% lower than the year-ago figure owing to unfavorable weather conditions at PECO, reduction in demand due to the COVID-19 pandemic and lower realized energy prices.
On a GAAP basis, quarterly earnings were 37 cents per share compared with 79 cents in the year-ago quarter.
Total Revenues
Exelon's total revenues of $8,117 million lagged the Zacks Consensus Estimate of $8,299 million by 1.4%. The top line also declined 2.7% from the year-ago figure of $8,343 million.
Highlights of the Release
Exelon's total operating expenses increased nearly 6.2% year over year to $7,853 million.
Interest expenses were $395 million, on par with the year-ago quarter.
In 2020, the company efficiently served 0.7% and 1.04% more electric and natural gas customers, respectively, than 2019. Excluding Salem, the Exelon-operated nuclear plants at ownership achieved a 96.2% capacity factor for the quarter compared with 95.0% for fourth-quarter 2019.
During the year, the company achieved cost savings of $400 million, $150 million more than planned, through efficient cost management.
Planned Separation
On Feb 24, 2021, Exelon announced that its board of directors approved a plan to separate the utilities business, comprising the company’s six regulated electric and gas utilities, and Generation, its competitive power generation and customer-facing energy businesses. This will create two publicly-traded companies with the necessary resources to best serve customers, and help it sustain long-term investment as well as operating excellence. Exelon is targeting to complete the separation in first-quarter 2022, subject to final approval by the board of directors and other necessary approvals.
Hedges
Exelon's hedging program involves safeguarding of commodity risks for expected generation. As of Dec 31, 2020, the proportion of expected generation hedged for the Mid-Atlantic, Midwest, New York and ERCOT reportable segments was 97% for 2021.
Financial Highlights
Cash and cash equivalents were $663 million as of Dec 31, 2020 compared with $587 million in the corresponding period of 2019.
Long-term debt was $35,093 million as of Dec 31, 2020 compared with $$31,329 million in the comparable period of 2019.
Cash from operating activities for 2020 was $4,235 million compared with $6,659 million in 2019.
Guidance
Exelon issued its 2021 earnings guidance in the range of $2.60-$3.00 per share. The midpoint of the above guided range is $2.80, lower than the Zacks Consensus Estimate of $2.94 per share for the period.
Exelon Utilities projects capital expenditures of $27 billion over the 2021-2024 time period to benefit its customers.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month. The consensus estimate has shifted -9.58% due to these changes.
VGM Scores
At this time, Exelon has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision indicates a downward shift. Notably, Exelon has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.